TABLE OF CONTENTS Implementing a DPM system correctly requires a blend of strategic, accounting, and process engineering skills. It would be great if a nice fill-in-the-blank template existed to easily guide a practitioner in how to correctly identify the strategic performance measures and generate those measures' algorithms. Unfortunately, no such template exists.
The most critical aspect of a DPM implementation is identifying the correct measures. Even if the measures modeled and displayed on a DPM dashboard display are wrong, the plant's personnel will still tend to perform to those measures, which could drive the plant's performance in the wrong direction. Rigorously following the Vollmann decomposition process will help to ensure that the correct measures are identified, but the process still relies on the analyst's strategic, accounting, and engineering skills. We discussed the Vollmann decomposition process in chapter 4, but the best way to understand the process is to illustrate it with case studies of actual implementations. Each of the following case studies are based on real programs, and each illustrates important aspects of DPM implementations.
The pharmaceutical company in this case study has become a leader in automation for automating its global bulk pharmaceutical processing facilities. Its management team has been driving a major corporate transition to make the company more competitive in the tough global marketplace while maintaining its strong emphasis on quality. Major components of the transition include refocusing the employees on those activities that provide the...
