IEMS Vol. 7, No. 3, pp. 214-227, December 2008. A Delphi Approach to the Development of an Integrated Performance Measurement and Management Model for a Car Assembler Teay Shawyun † Assumption University of Thailand Ramkhamhaeng 24, BKK 10240 E-mail: teay@au.edu Selected paper from APIEMS 2006 Abstract. Today’s dynamic competitiveness requires an organization to improve its performance measurement and management. Quality Management Systems (QMS) abound, the main ones being: ISO series, Malcolm Baldridge National Quality Award (MBNQA), European Forum for Quality Management (EFQM), Six Sigma Business Scorecard and the Balanced Scorecard. Based on the literature, the IPMMM (Integrated Performance Measurement and Management Model) identified 7 key synthesized factors: leadership, strategy management and policy, customer and market, learning and growth, partnership and resources, internal processes and business results that are employed to investigate the key performance indicators of a car assembler using the Delphi methodology. In the 2 rounds of Delphi panels consisting of 20 senior management personnel, the 1 st round of 198 indicators in the IPMMM yielded 90 indicators. The 2 nd round yielded 43 performance indicators with 18 rated as critical based on the % assigned in the 1 st and 2 nd priority rating of “very important factor” and “key per- formance indicator” that must be ranked high on both of the priorities. The very critical indicators appeared to be: defect percentage and first time capability (tie in 1 st place) and revenue, goal setting, customer satisfaction index, on-time delivery, brand image, return on investment, Claim Occurrence Ratio, and debt being ranked from 3 rd to 10. th It can be surmised that an organization can identify and develop an appropriate set of performance in- dicators through the Delphi methodology and implement and manage them based on the Balanced Scorecard. Keywords: Performance Measurement, Performance Management, Key Performance Indicators and Delphi Methodology 1. INTRODUCTION Over the past decades, a rapid increase in global competition brought about by technological changes and product variety proliferations had accentuated the role of continuous performance improvement as a stra- tegic and competitive requirement in many organiza- tions worldwide. Nowadays, in order to maintain and improve their competitive advantages, performance mea- sures are widely used to evaluate, control and improve business processes that gave rise to the performance management system. The adoption of Quality Management System (QMS) and Performance Management System (PMS) is a strate- gic decision by the top management of an organization. The purposes of an organization to implement QMS and PMS are to identify and meet the needs and expectations of its customers and other interested parties (people in the organization, suppliers, owners, society). The QMS and PMS are aimed at achieving a competitive advantage in an effective and efficient manner by achieving, maintain- ing, and improving the overall organizational perform- ance and capabilities (Teay, 2005). At present, many automotive companies would like to improve their products to respond to the needs of their customers and to fulfill the goals of their busi- nesses. In this case, companies have to set up the sys- tems in terms of both the Quality Management System (QMS) and the assessment criteria. Many quality man- agement and performance management systems and criteria are available; including the ISO9000, the Mal- colm Baldridge National Quality Award (MBNQA), the European Quality Award (EFQM), the Six Sigma Busi- ness Scorecard, and the Balanced Scorecard. In addition, all of them have their own criteria and factors (Kaplan † : Corresponding Author