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Unformatted text preview: SCM 355 Important Concepts Chapter 19 (Performance Measurement and Evaluation) Purchasing and Supply Chain Performance Measurement and Evaluation Why measure performance? Support better decision making Support better communication Provide performance feedback Motivate and direct behavior Problems with Purchasing and Supply Chain Performance Measurement and Evaluation Too much data and wrong data Measures that are short-term focused Lack of detail Drive the wrong performance Measures of behavior versus accomplishments Purchasing and Supply Chain Performance Measurement Categories Exhibit 19.1 Price performance Actual price compared to plan Exhibit 19.2 Actual prices-to-market index Price comparisons between operations Target prices achieved Cost effectiveness Cost changes Cost avoidance Quality Parts per million Customer defects per supplier Field failure rates by purchase item and by supplier Time-related measures Time-to-market targets-new product/services On-time delivery/responsiveness...
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- Spring '08