Developing a BPI framework and PAM for SMEs

Purpose - The last decade has seen much interest in small and medium-sized enterprises (SMEs) from successive UK Governments highlighting the importance of this sector to the wealth-creating process of the UK economy. World-class manufacturing (WCM) is a set of methodologies that are used by organisations to compete globally and continuously improve their competitiveness. Original equipment manufacturers (OEMs) are now competing at a global level and many are world-class. The majority of the companies that make up the OEM's supply chains are SMEs. It is, therefore, imperative that SMEs also improve their competitiveness to a world-class level. This paper aims to address these issues. Design/methodology/approach - The paper uses a triangulation methodology consisting of a literature review, analysis of a 150-company survey and semi-structured interviews in the development of the business process improvement (BPI) framework and performance assessment methodology (PAM) tool. Findings - This study advocates a planned and integrated approach for the gradual achievement of WCM in SMEs by a strategy of BPI through continuous improvement and structured training. Practical implications - The work is of value to SMEs since the study encapsulates the requirements of SME management into the BPI framework and considers their critique of present frameworks; hence a practical framework that is honed for SME application. Originality/value - This paper fulfils an identified need for SMEs to achieve WCM status and offers a novel/practical framework and PAM tool which are timely because the DTI is promulgating the need for SMEs to become world-class.