Performance measurement experiences in aerospace product development processes

In engineering companies, intensified competition has increased interest in effective performance measurement particularly in manufacturing operations. More recently, it has been realised that significant potential for improving competitiveness may well be available by applying suitable measures to the more complex world of new product development (NPD). In this article, five case studies are presented showing how major aerospace companies are tackling this issue and some of the problems and benefits they have encountered. It was found that performance measurement's role was not confined to simple reactive monitoring but extended to a proactive mechanism for disseminating strategy and changing organisational culture. However, the measures used, in the main, focused on project/programme performance, in particular cost and lead-time metrics; and quality in terms of design errors or re-work. Measures for risk reduction, innovation, and design re-use were lacking. These issues need to be addressed too, to enable companies develop effective, innovative and risk free products or services.