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Performance Management: Key Learning Points Essay


Summary of the assigned article

In the modern world, customers’ tastes and preferences are changing tremendously. Businesses, therefore, have been forced to adopt automated manufacturing systems. The systems come with diverse benefits and receive rapid adoption. Manufacturing companies receive better performance by adopting the automated system. However, for the company to improve its performance they have to measure it. The basis for measuring performance is that automated manufacturing systems are extremely complex and costly as well. Performance measurement is the primary element for bettering performance. It identifies, troubleshoots as well as civilizes the production systems.

Both the productivity and flexibility act as the major differentiators of performance in trying to embrace the rapid growth, manufacturing as well as marketing an increasing product range for the ever-changing needs of an active marketplace. It is very essential for every business to know that in order to better their operations they have to adopt automated manufacturing. The performance measurement in conjunction with monitoring and incessant productivity enhancement of manufacturing systems has played a significant role compared to their level of investment and cost of operation.

Key learning points

  • In both the article and the unit, an automated manufacturing system contributes to increase output. An increase in production enables the company to have a better bargain in the sophisticated marketplaces.
  • Reduced labor cost is another key learning point. When the labor cost is low, the company has the advantage of producing at a minimal cost of production, thus maximizing their profits.
  • Improving safety is another strong point to understand in the article as well as in the unit. The organization needs to ensure the safety of both the products and employees who are involved in handling the products. The introduction of automated manufacturing in the production sector has helped to provide safety.
  • Another crucial point is consistency and quality. Consistency in production allows the continuous production of a product in the business with similar features. Quality also remains constant in all products that are similar to one another.
  • In addition, the lead-time reduces. It helps minimize the duration between the commencement and the end of the production process. The organization is, therefore, in a better position of meeting the demands of customers as soon as they arise. It hence breaches the gap between supply and demand.
  • The reduction of the ramp-up time involved in mass production fully reduces in both the article and the unit. Goods that used to take ages to provide because of bulkiness are now easy to produce. Customers do not have to wait for long anymore to get such products. It is unlike in the past before the introduction of automated manufacturing systems.
  • Lastly, there is complete freedom from relying on the availability of skilled labor. Skilled labor used to create a challenge for the company as there was a shortage of qualified personnel in various sectors. In addition, the compensation needed by those considered skilled by the company was too high. This had the effect of increasing the cost of production and minimizing the organization’s profits. The high cost of production that resulted in the process of compensating the workers is now something form the past since the businesses have shifted to the automated manufacturing systems.
  • It is ideal for businesses to know that industrial automation has the effect of quality improvement reducing the cost of manufacturing as well as being flexible to adapt. In addition, it provides the capacity to act in response to the demands of the market. This occurs because of the rising pressure from the manufactures to be able to shift swiftly from manufacturing one product to manufacturing the other without having to revamp their lines of production afresh.

Relevant statements to the session

It is worth for every manufacturing to note that performance measurement (PM) is the gateway to improving productivity. It acts as a tool for identifying and finding solutions to the problem as well as bettering the manufacturing systems. Therefore, without it, management will find it difficult to run the organization since they will be relying on individuals who are prone to making errors. Zairi in his quote of 1994 looked at measurement as the cause of improvement. He went further and gave comments that businesses that endeavored to assess eventually emerged as the winners in securing a better place in the market.

This is because an organization may not be in a position of understanding where its strengths, as well as weaknesses, are until they assess. After assessing, the business will know the areas to concentrate more, hence directing the needed resources towards those specific areas. He went on to elaborate that measurement encourages inquisitiveness, cross-examination, and challenging the manner in which things occurred.

Critical analysis

According to the proponents of automated manufacturing, it improves understanding of the product, ensures a strong focus, and builds trustworthiness within the organization. Performance measurement, therefore, is a highly significant aspect of the operation. It is required in order to develop the organization towards development, provide a road map to growth, and in ensuring that all the present efforts are directed toward meeting the planned goals of the organization. The proponents also assert that performance measurement improves control since well-organized performance measures show those accountable for specific results or problems.

The pros also argue that Performance measurement is a sign of growth and gives a sense of the company’s present position, more so where it is headed. However, the opponents of the system, on the other hand, argue that the automation of manufacturing encourages short-termism. This has the effect of promoting minimization of inconsistency other than regular improvements. The opponents of automated manufacturing systems also argue that the systems are extremely complicated and costly.

Practical implications

Modern performance evaluation depends on the utilization of performance measurement systems comprising various metrics. The metrics undergo a careful selection to suit the requirements of the organization. The managers of every organization need to adopt this advanced performance measurement. This will enable them to allocate more time on weak areas before the problems are out of hand. The current performance measurement is a clear indicator of organizational activities.

This will allow those managing production to establish one to one connection between the activities they undertake on the business premises and figures in the monthly regular cost statement. The current performance management is multi-dimension, hence looking at various different viewpoints of production at one time. It is not like the old systems that looked at one area at a time therefore, consuming both time and resources of the organization, which would have otherwise, been directed to other relevant areas.

Learning reflections

It is important for every organization, which is intending to join the manufacturing sector to embrace advanced performance measurement. Embracing the current system will allow the organization that is currently in place and the emerging ones, to remain relevant. In addition, it will withstand the challenges brought up by large companies that have adopted such systems in terms of competition. It will also allow them to meet the customers’ changing demands without having to change all production lines.

This is because the automated manufacturing system is flexible, therefore no need for beginning the whole process afresh. This puts the organization on the safe side in terms of both resources and time. Moreover, it will not lose its customers in the process. Finally, the organization will achieve its goal and be able to enjoy the benefits of scale.

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"Performance Management: Key Learning Points." IvyPanda, 30 Aug. 2020, ivypanda.com/essays/performance-management-key-learning-points/.

1. IvyPanda. "Performance Management: Key Learning Points." August 30, 2020. https://ivypanda.com/essays/performance-management-key-learning-points/.


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IvyPanda. "Performance Management: Key Learning Points." August 30, 2020. https://ivypanda.com/essays/performance-management-key-learning-points/.

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IvyPanda. 2020. "Performance Management: Key Learning Points." August 30, 2020. https://ivypanda.com/essays/performance-management-key-learning-points/.

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IvyPanda. (2020) 'Performance Management: Key Learning Points'. 30 August.

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