Integrating performance measurement, system dynamics, and problem-solving methods. Issue 5 (24th October 2019)

• Record Type: Journal Article
• Authors: Irfani, Dian Prama; Wibisono, Dermawan; Basri, Mursyid Hasan
• Is Part Of: International journal of productivity and performance management. Volume 69:Issue 5(2020)
• Page Start: 939
• Page End: 961
• Publication Date: 2019-10-24
• Subjects: Performance improvement -- System dynamics -- Logistics performance -- Multiple roles -- Integrated performance management system; Industrial productivity -- Periodicals; Performance -- Management -- Periodicals; Performance -- Measurement -- Periodicals; Time study -- Periodicals; Motion study -- Periodicals; 658.3125
• DOI: 10.1108/IJPPM-12-2018-0456
• Languages: English
• ISSNs: 1741-0401

Abstract

Abstract : Purpose: Transport logistics systems in companies with additional public service roles are complex and could benefit from new approaches to performance management. Existing approaches tend to be fragmented; thus, the purpose of this paper is to integrate balanced performance measures, a dynamics model, and the problem-solving method into a new model. Design/methodology/approach: An integrated framework is developed by reviewing literature and synthesising attributes of performance measurement systems, system dynamics and problem-solving methods. The framework is then applied to a multiple-role company's sea transportation system. The study uses statistical methods to identify performance indicators, management interviews with document study to develop a dynamics model, and simulation methods to formulate an improvement plan. Findings: The performance measurement design stage allowed for the identification of balanced, aligned performance indicators, while the system dynamics model illuminated the impact of the system components' interrelationships on performance output. The problem-solving method allowed for analysis of system performance, identification of constraints and formulation of a performance improvement plan. Practical implications: This framework can help transport logistics system stakeholders in multiple-role companies avoid silo thinking, misaligned performance objectives, local optima and short-term solutions. Originality/value: This study contributes to the existing body of research by introducing a novel framework integrating performance measurement, system dynamics and the problem-solving method. It also addresses a theoretical gap by showing how interconnecting components of sea transportation systems affect transport logistics performance.