Framework for Performance Measurement System of Inbound Material Supply Chain of Pakistan Railways: A Step Towards Sustainable Development

Abstract

This paper deals with the issue of performance measurement system in public sector organization of developing counties through various key performance indicators, keeping in view Pakistan Railways as a case study. This paper also highlights different KPI at three different stages of performance measurement in such type of organizations to propose a complete framework. The subject study is of qualitative nature and it involved literature review of different research studies conducted on performance measurement systems in public sector organizations around world, examination of departmental source record/documents, and interviews of stakeholders. According to some reports Pakistan has the weakest higher education system in the world showing its tendencies towards research environment. Public sector organizations have always been a neglected area in terms of research perspective in the third world countries like Pakistan. PSOs either lack the basic frameworks of performance measurement system or having incomplete/inadequate systems of performance measurement resulting in a further downfall instead of any improvements, which is evident from their performance as well as source documents. The scope of this paper is limited to the inbound material supply chain portion only of Pakistan Railways. Due to lack of an ERP and anticipated difficulty in data collection in a consolidated manner, financial flow and information flow of supply chain is not included in the subject study and only material flow has been taken into account. The findings can be applied to related Public sector organizations’ dealing with the same predicaments by using similar performance measurement system based on KPIs keeping strategical, tactical, and Operational, sides in the internal and external perspective. There is major gap in terms of studies on Public Sector Supply Chain Management specifically of Pakistan Railways. The subject case study is unique in its scope in terms of its design and pattern.