Measurement and Follow Up of Logistical Efficiency and Quality: A Case Study at Scania
Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Previous research has indicated that how organisations measure their performance of logistic activities differ between industries and even between organisations within the same industry. This have resulted in numerous practices and methods for performance measurements as well as different systems for analysing them. Without an accurate and mutual way of measuring the performance within an organisation there is no way to determine progress and if the organisation is evolving towards its goals. The vast variety of ways that the performance of logistics can be evaluated and measured have resulted in several methods and standards for analysing the results, which has led to many different ways to measure performance. In addition to the many different ways organisations measure their performance, the efficiency and quality within logistics is one of the most difficult areas to measure since it is hard to determine the scope of the term logistics.Most organisations within the industry uses Key Performance Indicators as performance measurements and it is therefore interesting to analyse if they are best suited and if they are using them correctly. Numerous organisations measure their perform ance by what they think are Key Performance Indicators and do not separate the se from other types of measurements. Therefore, this research aimed to evaluate the performance through a holistic approach of performance measurements and then analysing how KPIs should be applied and used according to theory. This research evaluated which measurements that were currently used in the automotive industry through a case study at Scania and a benchmarking against MAN and Volkswagen. An extensive literature review was used to evaluate the identified measurements in order to determine the most suitable measurements for the industry. In addition to this, this research has also investigated how the performance measurements should be applied and managed in organisations in order to be efficient. This research collaborated what pervious research already had determined, that most organisations measure their perform ance by what they think are Key Performance Indicators. Organisation within the automotive industry are not using Key Performance Indicators according to the theoretical definition and does not fully utilise their practice. They seem to call all their measurements Key Performance Indicators and does not utilise the full potential of a system for analysing them. However, as theory suggested, the “true” Key Performance Indicators are often already measured within an organisation but not clearly identified and defined. The best suited performance measurements for internal logistics were identified as: Best suited performance measurements for internal logistics within the automotive industry Picking deviations Inventory Space Utilisation Defects in delivery Inventory accuracy In-full delivery Cover-time On-time delivery Line-stop (Stop-time) Productivity Warehouse Utilisation Extra transports Material receipt problems Lead-time (Throughput-time) Direct runThe system of managing the performance measurements should include them being devised from the organisations overall strategy and derived throughout the organisation in order to be efficient and ensure that everyone within the organisation is working towards the same goals. When the measures have been clearly defined and evaluated with a strong connection to strategy, they need to be communicated and used in a correct way in order to fulfil their purpose. It is therefore important to have a well-functioning intranet or system that presents the performance measurements and communicates them from an operational level to a managerial level. The measurements should also be defined and presented in a standardised way in order to ensure their correctness and enable easy comparison amongst departments.
Place, publisher, year, edition, pages
2016. , 48 p.
Social Behaviour Law
Samhälls-, beteendevetenskap, juridik, KPI, Key Performance Indicators, Performance measurements, Logistics
IdentifiersURN: urn:nbn:se:ltu:diva-55857Local ID: cab1299f-70cb-4298-9526-5c8ce47f1d1aOAI: oai:DiVA.org:ltu-55857DiVA: diva2:1029241
Subject / course
Student thesis, at least 30 credits
Industrial and Management Engineering, master's level
Validerat; 20160621 (global_studentproject_submitter)2016-10-042016-10-04Bibliographically approved