Multi-factor performance measures and the theory of constraints: An analysis of the current research state of the art

Planning and measurements are key to managing any modern process. When a variety of constraints and external factors are involved, the resulting process is hard to manage due to the complex interactions. The purpose of this paper is to review the current state-of-the-art research in order to 1) determine the latest concepts in multi-factor performance measures, 2) determine the opportunities for future research in using multiple performance criteria and the Theory of Constraints, and 3) the feasibility of using these concepts to develop a simulation to address performance management in a highly-sensitive multi-objective environment. To meet these objectives, two analyses of current research in the area were conducted. The first analysis was on multi-factor performance measures. The critical measures were chosen from Sink and Tuttle: productivity, efficiency, effectiveness, quality, and budgetability. The second analysis was on the use of the Theory of Constraints principles, performance measures, and scheduling. The results showed little research on either performance measurements for operations with multiple factors that define success or the use of Theory of Constraints principles to refine performance measures. This study concludes that the lack of studies in these areas indicates that further research on of multi-factor performance criteria and the Theory of Constraints is warranted and that a simulation could be developed as a predictive tool for management to understand interactions in a complex system.