Performance Measurement within Volvo Performance System - Alignment during implementation & Leading or lagging position

Sammanfattning

Title: Performance measurement within Volvo Performance System - Alignment during implementation & leading or lagging position Author: Linn Sperre Supervisors: Bertil I Nilsson, supervisor at the Faculty of Engineering, Lund University & Karin Frykholm, supervisor at Volvo Penta Background & Context: The setting of this master’s thesis takes place in an ever changing environment where it is important to keep up with the changes. The topics of leading & lagging indicators, key performance indicators and performance measurement are presented. The Lean philosophy sets the baseline for the ways of working. Problem Formulation: The three areas performance measurement, Volvo Performance System and leading & lagging indicators are under implementation within VPO Logistics. These areas are wanted to be investigated and evaluated in order to improve and make the implementations run more efficiently. Purpose & Research Objectives: The purpose of this thesis is to first map and state the current situation amongst the three areas performance measurement, Volvo Performance System and leading & lagging indicators within VPO Logistics. The evaluation of these areas shall lead up to propositions on how to improve the areas. The alignment between the areas and other functions outside of VPO Logistics is an aspect that shall be taken into account. Three research objectives have been established in order to fulfill the purpose. The three objectives are the following; RO1: As-is within VPO Logistics, RO2: Provide a foundation for upcoming propositions for each of the three research areas within VPO Logistics and RO3: Provide a foundation for aligning the three areas. Methodology: This thesis is a single case study, with elements of both descriptive and problem- solving nature. The approach is iterative, abductive and the data is qualitative. The data has been collected through various interviews, one observation and archival data provided by Volvo Penta. Propositions: The theory, empirical findings, analysis and discussion lead up to propositions that will improve the three areas performance measurement, Volvo Performance System and leading & lagging indicators. Each area is provided with their own improvement suggestion, as well as a foundation for making sure that they align. Conclusion: The purpose and research objectives are fulfilled due to the fact that the current situations are presented, as well as the evaluation leading up to the propositions. Furthermore, these areas are topics that can be continuously evaluated and improved, leaving room for further research and development.