Performance Mesauring in Manufacturing Company

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MSc in Business Administration


Godwill Tapisi Mukonje
MSc in Business Administration School of Management

Supervisors Lars Svensson and Björn Ljunggren
April 2009
Godwill Tapisi Mukonje, Master’s Thesis, BTH 2009


This thesis is submitted to the School of Management at The Blekinge Institute of Technology Ronneby, Sweden, in partial fulfillment of the award of a Master’s of Science degree in Business Administration.

Author Godwill Tapisi Mukonje E-mail:

Supervisor Lars Svensson (Associate Professor) E-mail:

Co-supervisor Björn Ljunggren (University Lecturer) E-mail:

Postal Address Blekinge Tekniska Högskola School of Management Box 520 372 25 Ronneby Visiting address Soft Center Ronneby Telephone BTH Reception: 0455-38 50 00 Fax: 0457-38 56 07

"If you can't excel with talent, triumph with effort."— Dave Weinbaum

Godwill Tapisi Mukonje, Master’s Thesis, BTH 2009



In today's competitive environment and globalised economy, customers are demanding more varieties and better quality products with faster and reliable deliveries. New manufacturing technologies are developing rapidly, resulting in new products, innovations and improvements in the manufacturing process, thus, requiring a proactive approach by organizations. To be proactive, organizations require innovative methods of performance measurement, to assess their progress towards achieving organizational mission, vision and strategic objectives. The recent performance measurement literature has put forward a number of suggestions, recommendations and performance measurement frameworks for manufacturing companies. The purpose of this thesis is to assess the extent to which manufacturing companies are following these prescriptions. This research adopts an exploratory case study approach with a qualitative research method for collecting and analyzing the data. The case chosen in this study is Alfa Laval Lund AB. In this research, the main methods used for data collection are interview, questionnaire and electronic database. The empirical findings were analyzed through identifying themes from the data, by relying on theoretical propositions derived from the literature. In evaluating the organisation’s performance measurement system, Kaplan and Norton’s balanced scorecard was used as an ideal model. The results show that Alfa Laval Lund AB follows the prescriptions of the recent performance measurement literature, thus, increasing its level of performance measurement competence. The concept of performance measurement competence suggests that organizations use measures that fit with their strategy, their organizational structure and the environmental uncertainty that they face. The type of strategy employed by a firm should influence the design of its performance measurement system.

Godwill Tapisi Mukonje, Master’s Thesis, BTH 2009



This work is dedicated to my dad Late Ndimasa Manasses Nawo, who died in February 2008. Neither a thousand words nor a million tears can bring you back, even though you never lived to see the completion of my master’s programme, your memory lives on.

Godwill Tapisi Mukonje, Master’s Thesis, BTH 2009



I will start by expressing my deepest gratitude to God almighty, for the good health, wisdom and his grace granted me through out the period of my programme. I am deeply indebted to my supervisors Lars Svensson and Björn Ljunggren, their gentle and inspirational guidance accompanied by their constructive criticisms led me to the completion of my thesis. I would like to thank Gunnar Olsson, the Site Manager of Alfa Laval Lund AB, Ronneby, Sweden, for taking time off his busy...
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