Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Web enabled Performance Measurement System (WePMS): Management Implications by Sai S. Nudurupati 3 rd Year ORS Funded Research Dated 24 Jan 2003 University of Strathclyde, Glasgow.

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Agenda 1.Introduction 2.Background 3.Methodology 4.Implementation (three cases) 5.Cross Case Analysis 6.Conclusion

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Introduction There are lot of frameworks and models on Performance Measurement Systems but most of them does not have IT platform (Bititci et al 2000 & Hudson et al 1999) Many Performance Measurement Systems fail because of lack of IT platforms (Bourne et al 2000 & Bititci et al 2000) A revolution in the market took place, offering commercial IT platforms to support Performance Measurement (In last decade) Many companies not in a position to buy commercial IT platforms available for Performance Measurement (although biased, based on Scottish Companies) –Heavy Investment (for the sake of performance measurement) –IT Productivity Paradox 1. Introduction

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Objective “To design and implement Web enabled Performance Measurement System (WePMS) and assess its business and management implications” 1. Introduction

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Anecdotal Evidence: Pilot Case Architecture of the web-enabled performance measurement system (WePMS) at the Pilot Company MS Excel MRP System ODBC Connectivity SQC Charts Quality Analyst MS Access Publishing on Web 2. Background

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Results of Pilot Case Study Pros Complete transparency of information Dissemination of knowledge More confident and proactive management style Provoke team behaviour Improve partnerships on supply chain Cons Resistance from some people as they are exposed People with lack-of-time to do WePMS related tasks 2. Background

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications A structured review was undertaken on the following software products (vendors shown below) Cognos Ltd. CorVu Plc. PB Views Ltd. SAP Ltd. Lucidus IPM. ProMeaSys. Hyperion Solutions Inphase Software PeopleSoft IPS-Sendero SAS Institute. Ithink Analyst Active Strategy Comshare Software Oracle Corporation Ltd. QuantiSoft Pilot Software Ltd. Lotus Development Corp. QPR Software 2. Background

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Results of review on commercial software The cost of most software products are extremely high ranging from £ 30k + Development + Consulting + Training costs. Even though most of the software are able to adopt different frameworks, they are build based on Balanced Scorecard. Most of the software are not good at controlling processes using statistical approach, which is required for organisations pursuing Six Sigma and similar techniques 2. Background

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications General Architecture of WePMS 2. Background

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications WePMS implementation issues Two sets of forces exist within a social system Lewin’s (1947) Force Field Analysis Drivers Blockers Lack of IT support Parent company initiatives Time and effort required Resistance Drive from senior management Perceived benefits 2. Background

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications WePMS implementation issues Contingent Approaches -Burns and Stalker (1961) -Dunphy and Stace (1990) Contextualist Approaches -Child et al (1987) -Pettigrew (1990) However, Mintzberg (1987) and Orlikowski (1996) criticized the above approaches for neglecting the distinction between deliberate and emergent changes required during implementation 2. Background

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Research Methodology The emergent change can only be realized in action and hence Action Research is chosen as the main methodology for implementing WePMS in four out of six cases. –Label Co Ltd., Edinburgh. –Distillers Ltd., Kilmalid. –Warehousing, Paisley. –Education Centre, Glasgow. However due to the lack of resources in the two out of six cases, Case Study approach was chosen as the main methodology. –Mineral Water Company Ltd., Perthshire. –Aircraft Engines Ltd, Ayrshire. 3. Methodology

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Effect of WePMS on Business and Management (Concept Level) WePMS Imlementation IT Practices, such as data collection, data analysis, data communication etc. Performance Measurement Practices, such as frameworks, performance indicators etc. Employees using the system Management Implications Business Results 3. Methodology

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Effect of WePMS on Business and Management (Detailed Level) Up-to-date and accurate information Open communication of information Identification of business trends Comparing situation against targets Access to suppliers and customers Employers are using information Employers acting as teams Employees are not resistant Less time is spent on data analysis Employers are knowledgeable Employers using in routine business Using results oriented approach Empowerment Employees are more relaxed Identify Strengths & Weaknesses Promote partnership Proactive decision making Continuous improvement Dissemination of knowledge Benchmarking Improve behaviour & attitude EnablersEffects & Results 3. Methodology

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Architecture of WePMS implemented at Label Co Ltd. Shuttl e Worth System SBD S MS Acces s SPC Software Web Pages 4. Implementation

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Effects: WePMS Implementation 4. Implementation

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Architecture of WePMS implemented at Distillers Ltd. Data3 AS 400 Lotus Notes Cognos Approach Database MS Acces s SPC Software Web Pages 4. Implementation

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Effects: WePMS Implementation 4. Implementation

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Architecture of WePMS implemented at Mineral Water Co Ltd. MS Access Manual Input Cognos Reporting Tool Web Pages 4. Implementation

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Effects: WePMS Implementation 4. Implementation

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Cross-Case Analysis Resistance was observed initially in three cases, however it was overcome with the senior management commitment In all four cases it has enormously decreased the time and effort required for data collection, analysis and communication In all four cases information is made available on their Intranet In three cases it provided up-to-date and accurate information, however in the fourth case it did not provide accurate information In three cases it is being used for identifying business trends In three cases, managers are more confident and pro-active in their decision-making. In the fourth case, managers are not confident about information In all four cases, it has initiated and enhanced team behaviour In three cases it has increased empowerment at management level but in two cases it increased empowerment at lower levels as well. In only one case it promoted significant partnership with suppliers and customers In all four cases, it did not enhance bench marking against competitors 5. Cross Case Analysis

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Conclusion Performance Measurement Senior Management Commitment Information Technology 6. Conclusion

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications Any Questions ?

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications

Centre for Strategic Manufacturing DMEM  Sai S. Nudurupati WePMS: Management Implications