A Performance Measurement System to Support Materials Management in Engineer-to-Order Companies

Materials management is one of the most important and critical processes within production planning and control in engineer-to-order (ETO) companies. To bring attention to this activity, ETO companies may benefit from a performance measurement system (PMS) that systematically monitors how well the activity is carried out. However, limited literature specifically addressing performance measurement in ETO has been identified. As a response to this, literature on ETO and performance management and –measurement has been reviewed and discussed in order to propose a PMS for measuring materials management performance in ETO. The research provides a basis for further studies on the topic, and the proposed PMS could be used by managers in ETO companies to assess and improve their materials management practice.