Developing a BPI framework and PAM for SMEs

Abstract

Purpose The last decade has seen much interest in small and medium‐sized enterprises (SMEs) from successive UK Governments highlighting the importance of this sector to the wealth‐creating process of the UK economy. World‐class manufacturing (WCM) is a set of methodologies that are used by organisations to compete globally and continuously improve their competitiveness. Original equipment manufacturers (OEMs) are now competing at a global level and many are world‐class. The majority of the companies that make up the OEM's supply chains are SMEs. It is, therefore, imperative that SMEs also improve their competitiveness to a world‐class level. This paper aims to address these issues. Design/methodology/approach The paper uses a triangulation methodology consisting of a literature review, analysis of a 150‐company survey and semi‐structured interviews in the development of the business process improvement (BPI) framework and performance assessment methodology (PAM) tool. Findings This study advocates a planned and integrated approach for the gradual achievement of WCM in SMEs by a strategy of BPI through continuous improvement and structured training. Practical implications The work is of value to SMEs since the study encapsulates the requirements of SME management into the BPI framework and considers their critique of present frameworks; hence a practical framework that is honed for SME application. Originality/value This paper fulfils an identified need for SMEs to achieve WCM status and offers a novel/practical framework and PAM tool which are timely because the DTI is promulgating the need for SMEs to become world‐class.