Abstract:
Small and Medium sized Enterprises (SMEs) look for tools, models and methodologies to gain competitive advantage. However, the selection of the right tools and techniques in order to obtain desired results is a major challenge. Manufacturing enterprises need to have the capability and knowledge for implementing any new tool or methodology. Considering these issues, this research presents a framework to provide manufacturing SMEs with a performance management maturity model that can be used as a self-assessment tool. Manufacturing SMEs can use this self-assessment tool in order to manage and improve their performance in a better way and to identify their areas of strength and deficiency in current processes. In addition to that, the framework is also intended to provide information about the best processes and practices in each performance dimension. First, the concept of performance measurement and management was investigated from literature and characteristics of manufacturing SMEs were established. This was followed by identifying the relevant dimensions, sub-dimensions and measures of performance keeping in view the specific characteristics of manufacturing SMEs. Self-assessment and its different types were evaluated from literature and a framework based on maturity grids was developed for identified dimensions, sub-dimensions and measures of performance. This was done by modifying previously designed frameworks based on maturity grids to suit the requirements of manufacturing SMEs. Finally, the framework was successfully implemented in two case companies. The proposed self-assessment tool proved instrumental in encouraging a systematic approach to performance management in order to gain competitive advantage. It was helpful in directing the owner/manager towards continuous improvement, improved manufacturing strategies and also aligning strategy with business environment. The framework also provides a guideline for learning and managerial action for improvement.