Production Planning & Control · 1993 · 14 citations · 0 references
ManagementManufacturing EngineeringPerformance ManagementCost ManagementPerformance MeasurementProduction ControlCost ControlOperations Performance MeasurementPerformance MeasuresPerformance MetricsStrategic Cost ManagementTime ManagementCost Performance MeasurementManufacturing Cycle TimeManufacturing Performance MeasurementPerformance Measurement SystemsProduction Performance MeasurementTime-based Competition
Abstract Today's production environment is often undermined by control mechanisms that were designed for another era. Specifically, most organizations control manufacturing wholly or in part using cost-based performance measurement systems. Depending upon the firm's objectives and key manufacturing task(s), too much attention upon cost considerations can have devastating effects upon overall performance. This paper discusses this issue in the context of corporations that increasingly find themselves competing for business on the dimension of time. A case study is presented to illustrate how time-based companies can be adversely affected by an overemphasis upon cost.