Team 2_03 Chap 5

Team 2_03 Chap 5 - C ha pt Supply Chain Performance...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Supply Chain Performance Measurement and Financial Analysis C ha pt
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Overview Developing Good Performance Metrics Metric Categories for SCM Revenue – Cost Issues Financial Impacts of SCM
Background image of page 2
Developing Good Performance Metrics for SCM
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Measure - used to denote any quantitative output of an activity or process, it is easily defined with no calculations and with simple dimensions Metric- being used more often in place of the term measure, more complex to define and usually involves a calculation or combination or measurements, often in the form of a ratio. Index- combines two or more metrics into a single indicator. Usually used to track trends in the output process.
Background image of page 4
Measuring Performance: http://www.youtube.com/watch?v=R4HPYY 1
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
A good Measure Description Is Quantitative Measure can be expressed as an objective value Easy to understand Measure conveys at a glance what it is measuring and how it is derived Encourages appropriate behavior Measure is balanced to reward productive behavior and discourage “game playing” Is visible The effects of the measure are readily apparent to all involved in the process being measured Defined and mutually understood Measure has been defined by and/or agreed to by all key process participants Encompasses both outputs & inputs Measure integrates factors from all aspects of the process measured Measures only what is important Measure focuses on a key performance indicator that is of real value to the managing process. Is Multidimensional The measure is properly balanced a between utilization, productivity, and performance and shows the tradeoff Uses economies of effort The benefits of the measure outweigh the costs of collection and analysis Facilitates Trust The measure validates participation among the various parties Characteristics of a Good Measure
Background image of page 6
Is it Quantitative? Measure can be expressed as an objective value 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
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Does it encourage appropriate behavior? A basic principle of management is that metrics will drive behavior Is the Metric Visible?
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 44

Team 2_03 Chap 5 - C ha pt Supply Chain Performance...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online