Performance measurement systems and time-based manufacturing |
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Authors: | TIMOTHY FRY KIRK KARWAN WILLIAM BAKER |
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Institution: | 1. College of Business Administration , University of South Carolina, Columbia, SC, 29208, USA;2. College of Business , Appalachian State University , Boone, NC, 28608, USA. |
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Abstract: | Today's production environment is often undermined by control mechanisms that were designed for another era. Specifically, most organizations control manufacturing wholly or in part using cost-based performance measurement systems. Depending upon the firm's objectives and key manufacturing task(s), too much attention upon cost considerations can have devastating effects upon overall performance. This paper discusses this issue in the context of corporations that increasingly find themselves competing for business on the dimension of time. A case study is presented to illustrate how time-based companies can be adversely affected by an overemphasis upon cost. |
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