Developing a Strategic Measurement System by Utilizing the Principles of Balanced Scorecard and Hoshin Kanri : Danfoss Drives Vaasa Operations
Majaharju, Jenna (2021-05-26)
Majaharju, Jenna
26.05.2021
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2021052631784
https://urn.fi/URN:NBN:fi-fe2021052631784
Tiivistelmä
Producing, analyzing, and managing data is a critical area for every company to manage its op-erations. Without effective measurement and reporting practices, it is difficult for managers to monitor business and to know if they receive correct information to support strategic decision making. Today, it is understood that simply following financial information is not enough to ef-fectively manage and develop operations.
At the beginning of November 2020, the case factory moved to a new enterprise resource plan-ning system, SAP. This new ERP significantly changed the way, how the factory operates as well as the factory's local billing information was removed. In addition, the new products that will be released in the coming quarters will bring major changes to the plant's operations. In order for a company to continue to succeed in the future, it must get all departments to operate according to a common vision. A dynamic operating environment requires constant changes in operations, which can be supported by a committed personnel.
The aim of this study is to develop a strategic measurement system for the target company uti-lizing the theory of management by objectives, lean, hoshin kanri and balanced scorecard. The study examines the operational activities of a high-tech case organization based on a manufac-turing strategy and resource allocation using sense and respond as well as AHP methods. In ad-dition, the aim is to gain a broader understanding of the production operations by interviewing the factory’s steering group by using thematic interviews.
Designing an effective reporting system to the production operations requires proper formula-tion of the organization strategy. Underlying the sand cone model, there is an assumption that quality lead to delivery, then flexibility, and ultimately to the cost. According to the results, the case organization's core of operation is safety, followed by quality, flexibility, delivery, and cost. The main goal of the factory is to get all departments to work towards a common vision and to become a successful high-power factory. This requires a reallocation of resources, open com-munication, increased cross-functional cooperation, and a culture of continuous improvement.
At the beginning of November 2020, the case factory moved to a new enterprise resource plan-ning system, SAP. This new ERP significantly changed the way, how the factory operates as well as the factory's local billing information was removed. In addition, the new products that will be released in the coming quarters will bring major changes to the plant's operations. In order for a company to continue to succeed in the future, it must get all departments to operate according to a common vision. A dynamic operating environment requires constant changes in operations, which can be supported by a committed personnel.
The aim of this study is to develop a strategic measurement system for the target company uti-lizing the theory of management by objectives, lean, hoshin kanri and balanced scorecard. The study examines the operational activities of a high-tech case organization based on a manufac-turing strategy and resource allocation using sense and respond as well as AHP methods. In ad-dition, the aim is to gain a broader understanding of the production operations by interviewing the factory’s steering group by using thematic interviews.
Designing an effective reporting system to the production operations requires proper formula-tion of the organization strategy. Underlying the sand cone model, there is an assumption that quality lead to delivery, then flexibility, and ultimately to the cost. According to the results, the case organization's core of operation is safety, followed by quality, flexibility, delivery, and cost. The main goal of the factory is to get all departments to work towards a common vision and to become a successful high-power factory. This requires a reallocation of resources, open com-munication, increased cross-functional cooperation, and a culture of continuous improvement.