Unformatted text preview: Measure can be expressed as an
• Quantitative= Measurable • Qualitative=measure perception Qualitative metrics are backed up with Quantitative
data Is it Easy to Understand? Experience has shown that individuals
will understand a metric if they are
involved in its definition and calculation.
• One of the most commonly used metrics in logistics is On Does it encourage appropriate behavior?
• A basic principle of management is that metrics
will drive behavior Is the Metric Visible?
Good metrics should be readily available
to those who use them.
o o Reactive Metric- metrics are available in the
system for employees to see and use,
however they must attempt to find them
Proactive metric- leading firms “push” metrics
to metrics owners so they can react
immediately Does the metric encompass both outputs
• Process metrics such as on time delivery need
to incorporate causes and effects into their
calculation and evaluation. Does it measure only what is important?
• Just because data are available to calculate a
metric does not mean this metric is important Is it multidimensional?
• Although a single metric will not be
multidimensional, a firm’s metric program will
be. Does the process use economies of effort?
• • “Do we get more benefits from the metric than
we incur costs to generate it?”
The longer a firm has a metric in place the
more likely there are to be economies of effort. Does it facilitate Trust?
• • Probably the most important question
If it does not, complying with the other nine
characteristics makes little to no difference for
the effectiveness of the metric. Focus on performance measurement is
not a recent event in industry
• • Cost has long been recognized as an
important metric for d...
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This document was uploaded on 02/14/2014 for the course MKT 3359 at Texas Tech.
- Fall '13