A presentation by Steven A. Melnyk, Professor of Operations and Supply Chain Management, Michigan State University, USA.
Delivered during the 38th annual SAPICS event for supply chain professionals in Sun City, South Africa.
Performance measurement plays a critical role in every organization. It is also undergoing a dramatic transformation. This presentation explores the changes taking place and the implication of these changes for the supply chain manager. It identifies and investigates the critical changes – from control to communication; from being backwards oriented to feedforwarding.
A presentation by Steven A. Melnyk, Professor of Operations and Supply Chain Management, Michigan State University, USA.
Delivered during the 38th annual SAPICS event for supply chain professionals in Sun City, South Africa.
Performance measurement plays a critical role in every organization. It is also undergoing a dramatic transformation. This presentation explores the changes taking place and the implication of these changes for the supply chain manager. It identifies and investigates the critical changes – from control to communication; from being backwards oriented to feedforwarding.
Project by Indian Society of Management Accountants with Group of MBA Students www.cmaonline.in
ISMA Project as part of students training program to develop skills
An exemplary approach towards strong Academia Industry Partnership
You can buy this here: http://imojo.in/27gu1t
This ebook is aimed at helping small and medium businesses in their Purchase Management. The module starts with an introduction to the function, Roles and Responsibilities of executives in the function, Key tools and methodologies, covering ABC Analysis, Various Ordering Techniques like Re-Order Level & Two Bin System and various templates for MIS analysis.
3PL Links offers a variety of logistics services globally including supply chain solutions, frieght forwarding and audit payment services. Visit their website today to learn more, http://www.3pllinks.com/.
Project by Indian Society of Management Accountants with Group of MBA Students www.cmaonline.in
ISMA Project as part of students training program to develop skills
An exemplary approach towards strong Academia Industry Partnership
You can buy this here: http://imojo.in/27gu1t
This ebook is aimed at helping small and medium businesses in their Purchase Management. The module starts with an introduction to the function, Roles and Responsibilities of executives in the function, Key tools and methodologies, covering ABC Analysis, Various Ordering Techniques like Re-Order Level & Two Bin System and various templates for MIS analysis.
3PL Links offers a variety of logistics services globally including supply chain solutions, frieght forwarding and audit payment services. Visit their website today to learn more, http://www.3pllinks.com/.
The branch of Civil Engineering which deals with the design, construction and maintenance of the railway tracks for safe and efficient movements of trains is called Railway Engineering
BALLAST
RAILS
SLEEPERS
POINTS OF CROSSINGS
POINTS OF SWITCH
The rolled steel sections laid
end to end in two parallel lines
over sleepers to form a railway
track are known as RAILS The rails used in the construction of railway track can be divided into the following three types :
(1) Double Headed Rails (D.H. Rail)
(2) Flat Footed Rails (F.F. Rail)
(3) Bull Headed Rails (B.H. Rail)
Integrated Performance Management starts with a strategy
Strategy starts with a Balanced Scorecard with measures needed to assess if the performance processes and plans are actually delivering the planned performance
Balanced Scorecard is a management tool that provides stakeholders with a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals.
Balances financial and non-financial measures
Balances short and long-term measures
Balances performance drivers (leading indicators) with outcome measures (lagging indicators)
Leads to strategic focus and organizational alignment.
How to improve and map performance metrics to your organization's strategic plan. Results? Higher impact, better communications, and more business success
END RESULT ! Whether it is the end result of your audit or you want to audit the end result of the orgaization\'s activities - both are relevent ! Please view this presentation for a more clear understanding...
The changing business environment manager's perspectiveLou Foja
Management is expected to ensure that the organization uses its resources wisely, operates profitably, pays its debts, and abides by laws and regulations.
To fulfill these expectations, managers establish the goals, objectives, and strategic plans that guide and control the organization’s operating, investing, and financing activities.
This is a presentation about Covid-19 implications for research and researchers. This was part of a webinar on Emerging Trends in Research in field of Commerce and Management
organized by P.G. Department of Commerce Science College at Hinjilicut (Odisha).
There are some motivational elements for publishing. These elements are important for young researchers and faculty members. We should also keep in mind the quality indices such as h-index or impact factor associated with publications.
It has become imperative to conduct funded research in today's highly resource constrained landscape of higher education. We must understand the attributes of research the mindset of researcher and the requirements of funded research.
Industrial Engineering (IE) offers immense opportunities to improve Productivity, Quality and Responsiveness. Herein , some of the issues are highlighted.
There is a need to have a comprehensive look at the concept of smart village. This presentation is a part of a training programme on "IoT based smart village" conducted at ABV-IIITM.
Talent nurturing vis-a-vis student devlopment is a challenge. This challneg requires a multi-pronged focus and involvement of all the stakeholders.
Acdemic leadership need to recognise the same and work on a variety of initiatives to develop and nurture studnets.
Emerging manufacturing systems will be smart, sustainability and responsive to customer needs. Industry 4.0 offers an interesting platform. It is an integrative and all embracing architecture.
Research & pedagogy In digital environment : Imperatives & Implications Sanjeev Deshmukh
The digital environments calls for a number of innovative measures to sustain and enhance research. Social media and use of alt-metrics can enhance visibility of research.
This is an updated version of my earlier presentation on current research. It talks about teh digital environment and how to be visible in this digitalized world as a researcher.
Research in current scenario -sgd-adamf-20-apr-2018Sanjeev Deshmukh
Current research is driven by huge developments due to internet and digital disruptions. Democratization of education has opened up new vistas for doing research. It is essential to remain visible.
Lot of preparation is required for a typical young faculty while pursuing his/her career. He is constantly challenged and he/she has to excel in various dimensions such as teaching, research, extension/outreach, administration and professional recognition.
This is about the challenges faced by teacher in the scenario of onslaught by digital environment. One needs to tackle it by being sensitive to the needs of the hour and also by properly embracing the technology.
This is on how to do literature review based on some experience in good journals. Literature review is an important phase in any research and must be given due importance .
This presents an overview about relevance and significance of statistics as a valid tool in enhancing quality of research. It also touches upon some misuse and abuse of statistics.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
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3. 3
Evaluation & Measurement
Evaluation is necessary
What cannot be measured cannot be
controlled !
Why measurement
Support better decision making
Support better communication
Provide performance feedback
Motivate and direct behavior
4. 4
Measurement
Effectiveness: extent to which , by choosing a
certain course of action , a previously
established goal or standard is being met.
Efficiency: Related to the resources which are
required to realize the previously established
goals.
Relation between planned and actual costs !
5. 5
Effectiveness
Purchasing materials costs/prices
Materials price/cost control
Materials price/cost reduction
Product /quality
Purchasing’s involvement in new product
development
Purchasing and Total Quality Control
Purchasing logistics
Adequate requisitioning
Order and Inventory policy
Supplier delivery reliability
7. 7
Typical Indicators…
Average value of purchase order
Stock-out frequency
Rush Order Index =
Number of rush orders/Total Number of orders
Obsolescence index =
Value of non-moving items/Total value of Inventory
Lead time
Inventory turnover ratio =
Annual Purchase Value/Average Stock Value
8. Remarks..
The objective of supply chain management (SCM) is to
make supply meet demand.
SCM is the collection of actions required to coordinate and
manage all activities necessary to bring a product to
market, including procuring raw materials, producing
goods, transporting and distributing the goods and
managing the selling process
Companies must always be concerned with their competition. Today's
marketplace is shifting from individual company performance to supply chain
performance: the entire chain's ability to meet end-customer needs through
product availability and responsive, on-time delivery, cost and inventory !.
Supply chain performance crosses both functional lines and company
boundaries. Functional groups (engineering/R&D, manufacturing, and
sales/marketing) are all instrumental in designing, building, and selling products
most efficiently.
9. Remarks…
To achieve that goal, you need performance measures, or
"metrics", for global supply chain performance improvements.
Performance measures must show not only how well you are
providing for your customers (service metrics) but also how
you are handling your business (speed, asset/inventory, and
financial metrics). Given the cross-functional nature of many
supply chain improvements, your metrics must prevent
"organizational silo" behavior which can hinder supply chain
performance.
10. Remarks..
In supply chains with multiple vendors, manufacturers,
distributors and retailers, whether regionally or globally
dispersed, performance measurement is challenging because it
is difficult to attribute performance results to one particular entity
within the chain.
There are difficulties in measuring performance within
organizations and even more difficulties arise in inter-
organizational environmental performance measurement.
The reasons for lack of systems to measure performance
across organizations are multidimensional, including non-
standardized data, poor technological integration, geographical
and cultural differences, differences in organizational policy,
lack of agreed upon metrics, or poor understanding of the need
for inter-organizational performance measurement
11. What Is Performance Management?
It is a systematic process of
Planning work and setting expectations
Continually monitoring performance
Developing the capacity to perform
Periodically rating performance in a summary
fashion
Rewarding good performance
12. Management Process Linkages
The management process of discovering, defining and
implementing business activities that will result in a value-
enhanced future of the firm
A management process
that is used to monitor
business activities and
thereby facilitate
achievement of the
firm’s objectives
A business process is
a collection of linked
business activities that
enable or deliver
goods, services,
information or money
Descriptions of the
“give and get”
relationships between
the firm and each of its
stakeholders, relative
to alternatives
Performance
Measurement
System
Business
Processes
Stakeholder
Value
Propositions
Business
Strategy
14. Issues in performance
measurement system
How well the organization is doing?
Is the organization meeting its goals?
Are the customers happy?
Are the processes in control?
If and where improvements are necessary?
15. Similar to the performance measurement used,
the performance measurement system may be
unique to each individual organization, or unit
within an organization, reflecting its
fundamental purpose and its environment
16. Objectives of Metrics
Measuring the activity (volume) and the SC
performance
Setting goals and comparing the actual
situation
Following a plan
Determining the levers that will help achieve
goals and single out the priority action
programs
Revealing the degree of flexibility
17. Principles of metrics design
Speed, reliability , and simplicity are the main criteria for
efficient metrics
Arranging indicators by priority
Segmenting the metrics
Visualizing the function content
Classifying objectives of the function or team
Selecting indicators that deal with quality
Formatting the metrics effectively
18. Characteristics of Effective
Metrics
Independence
Appropriateness
Objectivity
Regularity
Linkage with other
indicators
Coherence
Simplicity
Cumulative
Realistic
19. Performance measurement system
(PMS): Desirable Features
Transparent
Simplicity and clarity
Self-regulating
Objective
Motivating and stimulating to all stakeholders
Creativity
Dynamic over time
20. Performance measurement system
(PMS): Desirable Features (contd.)
PMS should have multiple criteria
Primary purpose should not be to reward or to punish
Performance-to-schedule measures must use group, not
individual results
Specific goals must be established and reviewed
PM must be understood by those whose performance is being
measured.
PM data must be available for constant review
21. Problems with just one measure of
success
If you were to ask most anyone how they would measure
company performance, they might give you a funny look
and say, "How much money the company makes, of
course! Isn't that obvious?" To a certain extent, they are
right. Profitability, gross revenues, return on capital, etc. are
the critical, "bottom line" kind of results that companies
must deliver to survive.
Unfortunately, if senior management only focuses on the
financial health of the organization, several unfortunate
consequences arise. One of these is that financial
measures are "lagging indicators" of success. This means
that how high or low these numbers go depends on a wide
variety of events that may have happened months or years
before and that you have no immediate control of in the
present.
Being in a plane falling from the sky is a bad time to realize
that you should have done routine maintenance, and oh, by
the way, filled it with fuel!
22. Quantitatively based performance
management
Measurements of multiple performance factors
occur frequently at each stage in the supply chain
Time and cost are key measures, but others are
used as appropriate to the specific supply chain.
All measures must relate to the ultimate supply
chain goals.
23. Generic framework
Decide what is needed
Determine behavior
Draw up a profile
Review the current system
Alignment
Analyze the process
Review
24. Some Indicators..1..
• Delivery performance
• Order fulfillment performance
• Fill rate (Make-to-stock)
• Order fulfillment lead time
• Perfect order fulfillment
• Supply-chain response time
25. Some Indicators..2..,
• Total supply-chain management cost
• Value-added productivity
• Warranty cost or returns processing
cost
• Cash-to-cash cycle time
• Inventory days of supply
• Asset turns
26. Some Indicators..3..
Financial : ROI, Turnover ratio
Productivity: Total productivity
Efficiency: Realized Production /Planned
Production
Customer LT: Time from order to
delivery
Production LT: Time from order relapse
to finished product
27. Commonly used measures for
evaluating retail performance
Service level;
Lost sales;
Product substitute percentage;
Gross margin
Stock-turn
28. PMS: Triggers
Increasing customer/distributor
complaints followed by order
cancellations
Increasing levels of stockholding
Increasing levels of backorders
periodic excesses and shortages of
storage space
increasing levels of stock obsolescence
29. Operational performance
Customer service levels over time
inventory turnover performance :
product group, rate of sale category etc.
inventory accuracy
number of customers not supplied from
stock
Number of stock outs per period
30. Financial performance
Return on inventory investment
Inventory investment/working capital
Percentage inventory increase(decrease) vs
percentage increase(decrease) in sales
Percentage inventory increase(decrease) vs
percentage increase(decrease) in cost of
sales
stock write-offs
31. Some more measures...
Total transportation capacity used/total
transportation capacity paid for
actual transportation cost/budgeted
transportation cost
actual transit time/standard transit time
33. Internal Performance
Measurement
Cost { total cost,cost/unit, cost/sales, inbound
freight, outbound freight, warehouse cost, admn,
processing, direct labor etc.}
Customer service {fill rate, stock-outs, shipping
errors, on-time delivery, back-orders, cycle time,
customer feedback}
Productivity {units shipped/employee, units/labour
Rs., ordes per sales person, etc.}
Asset Measurement {Inventory turns, Inv. Carry
costs, obsolete Inv., ROI etc.}
Quality {frequency of damage, Rs of damage,
Customer returns, Cost of returned goods etc.}
34. External Performance
Measurement
Customer Perception Measurement
Best Practices benchmarking
World Class Logistic- CLM
Logistics Excellence - Michigan State University
36. Framework 1: Function based
measurement system
Covers detailed performance measures
applicable at different linkages of SC
Marketing, Operations, Finance etc.
37. Indicators: Inventory
• ABC-analysis of the assortment categorized by stock
value/volume
• mean throughput time of the product group
• variance in throughput time of the product group in total
• mean throughput time of the product group in total,
subdivided by the : activities loading, transit and receiving
• reliability of the inventory regarding quantity and correct
place
number of damages/claim
• mean throughput time of the various products in stock in
total
• variance in throughput time of the various products in
stock in total
• mean throughput time of the various products in stock in
total, subdivided in the activities loading, transit and
receiving
38. Indicators:Outbound logistics
• cost structure of the warehouse operations (handling-in,
storage, and handling-out)
• total investment
• total cost of the warehouse
• total capacity concerning output volume
• costs warehouse operations per unit volume (m3
, ton)
• total number of trucks loaded/unloaded per worked time
unit
• labor hours per unit of output volume ( m3
, ton)
• labor costs per unit of output volume (m3
, ton)
• labor costs as percentage of sales
39. Indicators: Customer service
Product availability
order lines delivered in turns and complete/order lines entered.
orders delivered in time and complete/orders entered
Rs value delivered in time and complete/dollar value entered
real time vs planned lead time
Quality of delivery
Flexibility
Support to customer
Information
40. Framework : Balanced scorecard
Various perspectives such as the following
should be Balanced!
Financial
Innovation & learning
Customer service
Internal business
Balance scorecard balances and links financial and non-
financial indicators, tangible and intangible measures,
internal and external aspects, performance drivers and
outcomes.
41. Balanced Scorecard Approach
Mission viewed from four perspectives:
– Customer
– Internal Processes
– Financial
– Learning, Growth and Innovation
42. Customer focus..
Satisfied customers is the desired end result
of any supply chain management strategy, as
illustrated by a quote from Lee and
Billington[*]:
HP management has recognized that its
performance filling orders will cause it
to win or lose the competitive battle.
*The Evolution of Supply-Chain-Management Models and Practice at Hewlett-
Packard. Interfaces 25 (pp.42-63): 5 September-October, 1995.
43. Customer Perspective
Objectives Measures Targets
Internal Business Innovation and Learning
Objectives Measures Targets Objectives Measures Targets
Financial Perspective
Objectives Measures Targets
How do our
customers see
us?
How do we look
to
stakeholders?
What must
we excel at?
How can we
continue to
improve and
create value?
Vision
and
Strategy
How do
customer see us?
How can we
continue to
improve and
create value
What must
we excel at?
How do we
Look to
shareholder?
Four Perspectives
44. Remarks..
Once the company mission, strategy and measures have been defined
and agreed upon, the next step is to understand fully the drivers
(causes) behind movement (up and down) of your balanced scorecard.
Without the specific knowledge of what drivers will affect your
scorecard, your organization just might spend much time, money and
effort and achieve very little.
These drivers fall into four categories:
· Environmental - those factors outside the influence of your
organization, such as governmental regulations, the economic cycle,
local, national and global politics, etc.
· Organizational - systems inside the organization such as company
strategy, human resource systems, policies, procedures,
organizational structure, pay, etc.
· Group or departmental - work processes, group relationships, work
responsibilities, work assignments
· Individual - personality, management style, skills, behaviors.
45. Various Measures..1..
Financial Perspective
Return-on-capital-employed
Cash Flow
Project Profitability
Sales Backlog
Innovation & Learning Perspective
% revenue from New services
Rate of improvement Index
Staff Attitude survey
Revenue per employee
46. Various Measures..2..
Customer Perspective
Customer ranking survey
Customer satisfaction index
Market share
Internal Business Perspective
Hours with customer on New Work
Tender success rate
Project performance index
Project closeout cycle
47. “The performance measurements become a
driving force behind the change process.”
— CEO of CFT
48. Some Issues…
Performance measurement system and its
linkages with strategy
Behavioral issues related to performance
measurement system
Development of Multi-criteria decision making
framework
Role of information system in measurement
Benchmarking and performance
measurement system
49. Concerns..
Overcoming mistrust. Traditional SCM practices have been adversarial. Trust
in data sharing, acquisition and monitoring needs to be built.
Lack of understanding. Multi-organizational measures are difficult to
understand for managers focused on internal systems.
Lack of control. Managers and organizations wish to be evaluated on
measures they can control. Inter-organizational measures are difficult to
manage and thus control.
Different goals and objectives. Differing organizations have different goals
and thus would argue for differing measures.
Information systems. Most corporate information systems are incapable of
gathering non-traditional information relating to supply chain performance.
Lack of standardized performance measures. Agreed upon measures in terms
of units to use, structure, format, etc. may not exist.
Difficulty in linking measures to customer value. Linkage to stakeholder value
(expanding to environmental issues) is becoming more complex. The
definition of who the customer may be inside a supply chain also is not clear.
Deciding where to begin. Developing supply chain-wide performance is
difficult since it is not always clear where boundaries exist.
Source: Brewer and Speh (2001)
50. 50
Typical problems with
measurement & evaluation
Too much data and wrong data
Measures that are short term focused
Lack of detail
Drive the wrong performance
51. Implementation
The development of new measures and the development of new
benchmarks, based on these measures; in developing the new
measurement format, various aspects of the supply chain definition can be
expected to affect the specific mix of measures used.
The position of players in the chain (supplier, manufacturer, wholesaler,
service supplier) affects their contribution and relevant measures, the level
of integration and the strategic approach may affect the relevance of
measures. Creating benchmarks based on the new measurement systems
may contribute to directing management effort in optimizing the supply
chain.
The development of tools that can help support the implementation of the
new measurement approach may be a crucial step leading to the actual
application of new measurement approaches.
The tools cannot be limited to the measurement system itself; they also
need to include strategic trade-off and planning frameworks in order to
assure executive “buy-in” and commitment and initiate actual improvement
processes in the supply chain.
53. 53
Measurement category..1..
Price performance
Actual price compared to plan
Actual price to market
Price comparisons between operations
Cost effectiveness
Cost changes and cost avoidance
Workload
54. 54
Measurement category..2..
Material status and control
Supplier performance
Quality, reliability , delivery flexibility etc.
Strategic performance
Purchasing planning and research
55. Implementation.. Industry view
How much of improvement is due to measuring and
reporting performance, and how much is due to other
factors “is a really good question,” he added. : “When
we first started along this path, the global supply-
chain task force said that performance measurement
and measuring the right things and aligning
measures across the organization could very well be
the most important success factors in making sure
that we deliver results. We’ve taken that at face value
and really try to report the right supply-chain
measures.”
56. Balance : a MUST
As with too many measurements, using too few
performance metrics, or giving too much weight to
one, also causes problems.
Try to encourage people to recognize control points
in the process — where you get maximum value by
taking the time measure —
And to use metrics in a collaborative fashion that
helps people recognize the interdependencies in their
organization or in the supply chain at large
That gives people some sensitivity as to what went
on before them and what will happen next, so they
can optimize their actions and decisions in a larger
context.
57. Inventory ManagementInventory Management
The Indian Scenario Source: Sahay(2004), Presentation for FICCII
Inventory Overall Industry Sector
Averages[as number of days of sales] Average Lowers Highers Lowers Highers
Raw Material 33.41 1 120 CDs 25.0 Engg 42.2
Work in Progress 14.25 0.1 210 FMCG 4.4 Engg 20.7
Finished Goods 16.09 1 40 Auto 9.9 CDs 23.3
Goods in Transit 6.44 - 85 Auto 4.08 Elec 11.0
Accounts Receivables 46.51 2 145 FMCG 16 Engg 72.0
Accounts Payables 45 2 127 Elec 25 CDs 60.0
Inv. at DCs 14.48 2 50 Elect 10 CDs 24.7
Inv. at Distributors 16.77 3 45 Elec 3.0 Engg 23.4
Inv. at Retailers 13.48 1 45 Chem 8.6 Auto 30.0
58. Summary
PMS is necessary in any Supply chain linking
planning with actual action!
Typical Measures: inventories, lead times, costs,
customer service, financial performance etc.
Triggers :increased costs, Increased inventory,
stock-outs etc., poor customer service, lost sales
and more.
Frameworks: Functional, Balanced score card,
SCOR etc.
Typical Problems: Motivational, Not capturing what is
supposed to capture, overkill etc.
Solutions : PMS should be Specific, Measurable,
Agreed-upon, Realistic and Time-bound
In short :SMART
59. Concluding Remarks
PMS helps in assessing the strength as well
as identifying the ‘weak spots’
It directs improvement process
It motivates variety of stakeholders
Guides in implementing strategy
Businesses rarely want to design
performance measurement systems from
scratch. Usually managers are interested in
eliminating any weaknesses in their existing
system.
60. Useful resources
Books
Chopra, S. and P. Meindl, Supply Chain Management, Prentice-Hall
Web site
www.supplychainmetric.com
Supply Chain Council (http://www.supply-chain.org)
LogisticsWorld (www.logisticsworld.com )
Links for Best Practices
Best Practices in Management (www.bpmanagement.com)
Best Change Practices
(www.changecentral.com/changepractices.html)
Best Practices in Business Process Re-engineering (
www.prosci.com/bpr_ah1.htm)
amrresesrch.com