Performance measurement and continuous improvement : are they linked to manufacturing strategy?

To maintain or achieve competitiveness and profitability, a manufacturing firm or enterprise must respond to a range of challenges, including rapid improvements in technology, declining employment and output, globalisation of markets and environmental requirements. In addition, substantial changes in government policy have had important impacts in many countries as has the increasing levels of global trade. Manufacturing enterprises need to have a clear understanding of what their customers want and why customers purchase their products rather than purchase from their competitors and they need to fully understand the aims of the business in terms of its customers, market segments, product attributes and geographical markets and performance. Continuous improvement (CI) methods have become widely adopted and regarded as providing an important component of increased company competitiveness. This paper examines the extent to which continuous improvement activities have contributed to the different areas of business performance.