Managing performance measurements in early production development phases - A case study at Volvo Cars

Performance Measurements, sometimes also called ’Key Performance Indicators’, are becoming more and more frequently used in different kinds of operations, especially within manufacturing. The management of Performance Measures is sometimes referred to as ’Performance Measurement System’, which is something practically all companies have in some form. Though, using Performance Measurements in early production development phases, before the actual production have started, is less common and little literature within this area currently exists. The field that this thesis aims to investigate is the following; Management of Performance Measurements during early production development phases, with the purpose of providing one or several frameworks in order to secure alignment between the organisation, corporate strategies and Performance Measurements, including suggestions of how to improve present state. This thesis has been performed through a single-case study at Volvo Cars Corporation in Gothenburg, Torslanda. The case has been carried out at the department ’Body In White’, a function which develops the production processes and lines of the body plants. The study underwent three major phases: Orientational, Exploratory and Deliverables in order to fully understand the root cause problems and answer the defined research questions. The data gathering strategy was to conduct both a top-down and bottom-up analysis approach, which was mainly done through 26 semi-structured interviews at Torslanda as well as observations. The thesis has resulted in an extensive definition of the Performance Measurement Systems in early production development phase, including purpose mapping and improvement areas, and solutions and interventions of identified problems. This includes a new suggestion of a Performance Measurement System and two frameworks: a model for connecting KPIs with Operational Excellence in early production development phases, and a model for KPI identification related to high-level strategies and objectives. Developed solutions are expected to bring better clarity, understanding and an increased level of alignment for Performance Measurement Systems in early production development phases in the automotive industry.