Multiple-Technique Approach for Improving a Performance Measurement and Management System: Action Research in a Mining Company

Abstract

Many enterprises encounter difficulty in managing strategic goals and performance measures because of a lack of a systemic and objective procedure and method. Action research was conducted through a case study approach at a mining company to investigate this problem regarding performance measurement and management (PMM) and to identify potential solutions for application. This research proposes a multiple-technique approach (including the Delphi method, analytic network process, system dynamics simulation, dashboard visualization, and radio frequency identification tracking techniques) and a creative implementation framework for overcoming the shortcomings within a case company and those in the relevant performance measurement literature. This study demonstrates a step-by-step approach for establishing a PMM system using a real case example. Furthermore, for sustaining the effectiveness and efficiency of the PMM system, key performance indicators (KPIs) were continually monitored against a changing operational environment through design, measurement, analysis, and improvement processes to address problem areas occurring in the production and maintenance departments of a mining company. The benefits of the PMM system in practice are demonstrated by the outcomes of the mining company, with noticeable improvements observed in many KPIs.

Keywords:

• Performance Measurement and Management
• System Dynamics Simulation
• Delphi Method
• Analytic Network Process
• Key Performance Indicators
• Radio Frequency Identification
• Dashboard
• Action Research

EMJ Focus Areas:

• Continuous Improvement, Operations Management
• Organizational and Performance Assessment

Acknowledgement

The author gratefully appreciates Mr. Jen-Chieh Chang, Mr. Yi-Yuan Chien, Mr. Jung-He Ouyang, Mr. Ching-Wen Hsueh and Dr. Tseng-Cheng Lin for their participation in data collection and validation during the implementation of the AR project.

Additional information

Funding

This study was supported in part by the National Science Council of Taiwan under Grant NSC 95-2622-E-424-001-CC3.

Notes on contributors

Han-Hsin Chou

Han-Hsin Chou is an assistant professor in the Department of Travel Management at the Hsing-Wu University in Taiwan. He obtained his MS and PhD in Systems Engineering and Management from the Chung-Cheng Institute of Technology, National Defense University. Before his academic career, he worked as a project manager with aspects of acquisition management and logistics planning of weapon systems. Dr. Chou’s current research areas cover performance measurement and management, air transportation service management, and logistics management.