An assessment of alignment and congruence of performance measurement at DRMO

Martha Patricia Zavala, University of Texas at El Paso

Abstract

Domestic producers lost their competitiveness to foreign manufacturers when they failed to recognize changes in consumer preference and accepted obsolete manufacturing and management practices (Howell et al., 1987, p.2). In an effort to regain their lost competitiveness, producers have turned to the implementation of a set of new manufacturing strategies known as World Class Manufacturing. ^ Adapting the performance measurement system to fit new manufacturing philosophies has been one of the most difficult challenges found by companies pursuing world class manufacturing. There is a general agreement about the existence of a mismatch frequently present between strategy, actions, and measures when companies make this transition to World Class Manufacturing. ^ Delco Remy Mexican Operations is a two-plant maquiladora operation of Delco Remy Division of General Motors located in two Mexican cities, and one distribution center located in the US border city of El Paso, TX. Delco Remy Division's major objective in establishing an operation outside the United States was to gain a competitive advantage through product cost reduction achieved through savings in labor wages. Its Mexican operations, however, went beyond that narrow objective of achieving labor cost reduction and started pursuing the achievement of World Class Manufacturing in the last several years. Many changes have been made to Delco Remy Mexican Operation's strategic objectives, actions, and performance measurements since then. ^ A survey conducted at Delco Remy Mexican Operations will be used to determine the degree of alignment and congruence between the company's current strategy, actions, and measures. It is not the intent of this report to suggest changes in the performance measures that are found not to be in congruence with DRMO's strategy. One objective of this report is to highlight those areas in which no alignment exists between the strategy, actions, and measures currently used at DRMO. Another objective of this report is also to determine the degree of support that the currently used performance measurement system provides to those actions considered critical to the achievement of DRMO's strategy. ^

Subject Area

Business Administration, Management

Recommended Citation

Zavala, Martha Patricia, "An assessment of alignment and congruence of performance measurement at DRMO" (1994). ETD Collection for University of Texas, El Paso. AAIEP26247.
http://digitalcommons.utep.edu/dissertations/AAIEP26247

Share

COinS