An intelligent system for performance measurement selection A M Ahmed 1 * and H S Abdalla 2 1 Bradford University School of Management, Bradford, UK 2 Department of Design Management and Communication, De Montfort University, Leicester, UK Abstract: The vital role of selecting the appropriate performance measurement has received widespread attention in industry and academia. This is due to the direct impact that these measures have in gaining competitive advantages. The use of a computer-based system to ease the complexity attached to this process has received no attention in the literature. This article brie¯y describes an intelligent system being developed as a step forward in this direction. The paper concentrates only on discussing the diVerent models being adopted in this system and how they are integrated. One case study is discussed to demonstrate how a company can use and bene®t from the developed system in rationalizing its performance measures. Keywords: surpetitive framework, performance measurement, decision support system, world-class organizations NOTATION CIMA Chartered Institute of Management Accountants DSS decision support system IT information technology WCO world-class organization 1 INTRODUCTION This article is a continuation of ongoing research into developing a surpetitive framework for world-class manufacturing organizations (WCOs) (Fig. 1) [1 ± 3]. The paper addresses the importance of measuring perfor- mance and the need for employing the technological advancement in computers in terms of a decision support system (DSS), which is continuously taking place. 1.1 Structure and scope The ®rst part of this paper begins with the structure and scope, followed by an introduction to the critical role of performance measures in a company’s success. It out- lines the need to move away from developing only a theoretical framework to the real world of software. The second part discusses brie¯y the developed system structure and components. The third part focuses on the various models being adopted in the system and how they are linked together. The fourth part demon- strates some of the results achieved from one case study, and then a conclusion is drawn. 1.2 Introduction to performance measures Measuring performance for modern manufacturing ®rms is a topic of great interest to both academics and industrialists. Skinner [4] highlighted a problem that exists in traditional performance measurement systems. He commented [4]: ‘ A . . . major cause of companies get- ting into trouble with manufacturing is the tendency for management to accept simplistic notions in evaluating performance of their manufacturing facilities . . . the general tendency in many companies is to evaluate manufacturing primarily on the basis of cost and e- ciency. There are many criteria to judge performance.’ Kaplan and Norton [5], among others, argued that this problem can be overcome if a company embarks on a balanced set of measures that address four major ques- tions: 1. How does a ®rm look at its shareholders (®nancial perspective)? 2. What must a ®rm excel at (internal business perspec- tive)? 591 B04001 IMechE 2002 Proc Instn Mech Engrs Vol 216 Part B: J Engineering Manufacture The MS was received on 30 April 2001 and was accepted after revision for publication on 9 November 2001. *Corresponding author: Bradford University School of Management, European Centre for TQM, Emm Lane, Bradford, West Yorkshire BD9 4JL, UK.