Performances Measurement in a Total Quality Environment

Purpose - The article investigates the enterprise performance measurement systems (PMs) design and the link with operational performance in a total quality environment of the automotive industry, based on a practical implementation example. Methodology/approach - Starting with the description of the evolution of the concept of PM, it has been identified why it is important to measure the performance, which are the limitations of financial metrics and which are the key elements for the PMs design. The following have been analyzed: the benefits of having in place such systems, the managers and employees perspectives and the tools needed to link the company strategy with processes and work cell indicators. Kaplan and Norton's balanced score card and Mendory and Steeple's PMs are presented too. An implementation process is described, for a Rindimreempiii3p1 implementation is faced with different problems which can occur during this faze and further. On daily activity, the worst possibility is to build a virtual reality, based upon corrupted indicators, with negative consequences on decision making processes. Research limitations/implications - Only the automotive area was taken into consideration and just one company implementation model was presented. Practical implications - It would be interesting to test the PM design and implementation model to other companies and industries. Originality/value - A practical implementation model was described and recommendations for PM systems' design and improvement were conceived.