Plant level performance measurement: an exploratory case study of a pharmaceutical encapsulation company

Over the last few decades, hundreds of books and articles have been written on performance measures in manufacturing companies. A good number of those works has focused on overall organizational performance at the corporate level, business unit performance, and individual performance. Barring a few studies, there has been very little work reported on what specific performance measures are used at the plant and department level at a manufacturing facility. This exploratory research, through a case study of a pharmaceutical encapsulation company addresses those issues. Results show that the managers use a wide variety of measures primarily for meeting corporate targets and implementing a gain-sharing plan. There are not many common measures of performance used by managers for decision-making. None of the managers specifically linked the performance measures to the competitive priorities of the products made at the plant. A few propositions and suggestions for future research are made in the paper.