Includes bibliographical references : (p. [37]-40) Drawing on qualitative data collected during semi-structured interviews with 36 profit centre managers in manufacturing firms in Victoria, Australia, this study seeks to explore the mechanisms used to manage multiple manufacturing performance dimensions arising from the pursuit of profit centre strategy. Where measures capture potentially conflicting influences on the manufacturing cost function, strategy implementation is facilitated by loosening control reactions to cost variances and through explicit attempts to integrate multiple measures. However, a joint emphasis on performance dimensions relating to manufacturing efficiency and customer responsiveness emerges as problematic. In contrast, a joint emphasis on quality and efficiency is relatively easily managed. It is suggested that in the context of responsiveness strategies, the difficulty of designing complete measures inhibits the relevance of performance measurement systems as a facilitator of strategy implementation.

This thesis proposed to improve an existing performance measurement methodology called the "General Measurement Methodology (GMM)." The GMM as well as its variations have been used in organizations to design a measurement effort to support performance improvement. It has evolved over a number of years and is currently being researched at the International Productivity Center (IPC). In order to attain its objective, this research adopted a case study approach supported by data from the literature as well as an expert panel. Three cases were considered to collect data on performance measurement system design and implementation. Two of these organizations (IPC and Acme Manufacturing Company) have used the GMM to set up performance measurement systems. The third case study (Golden State Power and Light {GSP&L}) was selected to lend another perspective to measurement system design since it used another approach or methodology. Site visits were made to each case study and data was collected primarily using the unstructured interview. The literature contributed more perspectives on how organizations measure performance. Responses from an expert panel of fourteen people enhanced the data base even further. Data from each of the above sources have been collected and processed. As explained in Chapter 6, the research design adopted had to be altered toward the end since the development and validation of the improved GMM was difficult. The strength and advantages of the improved version could not be completely verified. However, the conclusions of this thesis include a comprehensive description of the knowledge, wisdom and insight gained about measurement. A roadmap (based on the information acquired) toward effective measurement system design, development and implementation has also been presented. / Master of Science