Current developments in performance managementCurrent developments in performance management Chapter 11
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Key features of approach Organisational considerations
Focus on continuous improvement by •
eliminating waste.
Incremental changes over long period •
lead to significant improvements.
Uses analytical techniques to identify •
opportunities to eliminate waste.
Building block for other lean production •
methods.
Compares target costs with actual cost •
reductions achieved.
Need to involve staff from all functions and •
levels.
Demands rapid implementation of •
improvements with follow-up.
Incremental improvements can be invisible in •
the short-term but need to be sustained.
Investigation required if target reductions •
are not achieved even if improvements are
made.
Target costing
Definition