Development of assessment methodology for improving performance in SME's

Purpose – The purpose of this paper is to develop an assessment methodology that can be used to evaluate performance of small and medium enterprises (SMEs) in the manufacturing sector. Design/methodology/approach – This area of the study focuses on the assessment of performance in manufacturing SMEs. The methodology contains qualitative and quantitative measures that can quantify the opportunities and benefits within SMEs, as well as identifying the performance gaps between the current performance of the company and world-class performance. This includes reviewing the literature relating to assessment methodology and collecting data by carrying out semi-structured interviews with staff at target SMEs. Findings – The results show that the proposed assessment methodology is effective in identifying hidden opportunities and benefits in the manufacturing SMEs sector, establishing world-class performance of the companies and comparing this with current performance in order to identify gaps in performance in manufacturing SMEs. Practical implications – This assessment can be used for monitoring and assessing SMEs performance. The developed methodology can be used by manufacturing SMEs as an assessment and benchmarking tool. It enables manufacturing SMEs to identify opportunities for improvement and determine the gaps in current performance; this will assist manufacturing SMEs in selecting an appropriate tool to improve their performance in order to achieve the company objectives. Originality/value – This paper presents a successful and effective assessment methodology for manufacturing SMEs. It measures current performance which will provide a useful indicator to identify waste. It attempts to improve company performance and suggests how such activities could be organised and managed more effectively. Consequently it leads to a high potential for cost and time saving and quality improvement.