Performance measurements in the implementation of CIM in small and medium enterprises: An empirical analysis

If a company has a strategic goal of achieving better productivity and quality, it is not only necessary to have action programmes that support productivity and quality, but also score-keeping system in manufacturing must integrate both the strategy and the actions. Performance measurements must appraise, reinforce and reward improvements in terms of action programmes being used to pursue productivity and quality. Performance improvement in small- and medium-sized enterprises (SMEs) can be achieved through the implementation of computer-integrated manufacturing (CIM). Many SMEs do not consider the implications of long-term benefits of CIM, but only consider short-term financial benefits when they decide about the implementation of CIM. They simply ignore the strategic benefits and intangibles. However, performance measurements considering financial, non-financial, tangible and intangible costs, and benefits have not received significant attention from SMEs while deciding on CIM. Nevertheless, CIM plays an increasingly important role in all aspects of competitiveness both in terms of product development and production techniques in SMEs. Therefore, considering the importance of investment in CIM by SMEs, an attempt has been made in this paper to study the implications of performance measurements on the implementation decisions. A framework has been developed to study the investment justification on CIM in SMEs with the help of an empirical study conducted in British SMEs. Finally, the conclusions are presented.