PRINCIPLES AND PRESCRIPTIONS FOR THE DEVELOPMENT AND IMPLEMENTATION OF PERFORMANCE DASHBOARDS

Abstract

Lean Production implementation in construction creates additional demands for Performance Measurement Systems (PMS), beyond what is typically suggested in general performance measurement literature. A PMS can support the implementation of Lean Production by evaluating the impacts of changes and providing information to guide organizations through this process. Some companies have adopted additional metrics during Lean implementation, but often limited to indicators related to the Last Planner System. Most companies still use traditional production control metrics, like cost, time deviation and project progress. There are opportunities for enhance performance measurement in Lean implementation programs, especially by incorporating leading indicators related to fundamental concepts and principles, such as pull production, work-in-progress, and continuous flow. Performance dashboards play a key role in achieving those objectives, facilitating information distribution across managerial levels, enhancing stakeholder communication, and encouraging participation. The main outcome of this investigation is a set of design principles (i.e. general recommendations that support decision-making in the design of a solution) and design prescriptions (i.e. suggested course of action for a given circumstance to achieve a certain effect) to guide the development and implementation of performance dashboards. This research is based on two empirical studies conducted in construction companies implementing lean production.