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.
Chapter no .07 performance measurement and controls in scmIsrar Khan Raja
The document discusses performance measurement in supply chain management. It describes benchmarking as identifying best practices from other organizations to improve performance. The Supply Chain Operations Reference model (SCOR) is presented as a standard for measuring and benchmarking supply chain performance. SCOR defines core processes, performance attributes, and metrics across five process categories: plan, source, make, deliver, and return. Key metrics include order fulfillment, customer satisfaction, costs, inventory levels, and supply chain response time.
This chapter discusses the importance of performance measurement in supply chains. It explains that establishing metrics allows companies to understand how they are performing and identify areas for improvement. Good metrics should be consistent with company strategies and focus on customer needs. The chapter provides examples of different types of metrics companies can use to measure costs, inventory levels, customer service, and overall supply chain performance. These metrics can be classified in various categories and should be integrated both within and across companies to effectively drive improvement.
This document discusses various approaches to measuring supply chain performance, including the Balanced Scorecard, SCOR model, Logistics Scoreboard, activity-based costing, and economic value added. It provides examples of performance measures that can be used across different areas of the supply chain, including customer service, processes, purchasing, manufacturing, logistics, administration, and marketing. Key frameworks like the Balanced Scorecard emphasize the importance of using a mix of financial and non-financial metrics to evaluate performance from multiple perspectives.
This document discusses measuring supply chain performance. It classifies supply chain performance measures into qualitative measures like customer satisfaction and quantitative measures like response time and delivery performance. It states that performance management systems measure both financial and non-financial indicators to improve visibility and transparency. Measuring supply chain performance supports better decision making, communication, provides performance feedback, and motivates behavior. It then outlines various categories for classifying supply chain performance measures, including price performance, cost effectiveness, time-related, administration/efficiency, internal customer satisfaction, supplier performance, and logistics metrics.
This chapter discusses the importance of performance measurement in supply chains. It explains that establishing metrics allows companies to understand how they are performing and identify areas for improvement. Good metrics should be consistent with company strategies and focus on customer needs. The chapter provides examples of different types of metrics companies can use to measure costs, inventory levels, customer service, and overall supply chain performance. These metrics can be classified in various categories and should be integrated both within and across companies to effectively drive improvement.
Operational Transformation in Banking OperationsRajeev De Roy
This document discusses various aspects of operational transformation for organizations. It covers topics like lean process transformation, productivity enhancement, resource rationalization, operational policies, procedures, and control checklists. The goal is to improve efficiency, reduce costs, enhance revenue, and manage risks through operational excellence initiatives. Various tools and approaches are mentioned that can help analyze processes, optimize resources, standardize operations, and monitor performance. Case studies show benefits organizations have realized in areas like productivity, costs, quality and turnaround times through operational transformation.
The document provides guidance on effective pricing strategies during difficult economic times. It recommends reaffirming your pricing strategy while gaining a thorough understanding of customers, costs, and competitors. Key steps include segmenting customers, establishing pricing metrics and incentives, developing options based on analysis rather than emotions, and training salespeople on pricing fundamentals. Tools like pricing simulations and reporting systems can help implement and monitor the pricing strategy. The overall aim is to optimize pricing decisions and maximize profitability.
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.
Chapter no .07 performance measurement and controls in scmIsrar Khan Raja
The document discusses performance measurement in supply chain management. It describes benchmarking as identifying best practices from other organizations to improve performance. The Supply Chain Operations Reference model (SCOR) is presented as a standard for measuring and benchmarking supply chain performance. SCOR defines core processes, performance attributes, and metrics across five process categories: plan, source, make, deliver, and return. Key metrics include order fulfillment, customer satisfaction, costs, inventory levels, and supply chain response time.
This chapter discusses the importance of performance measurement in supply chains. It explains that establishing metrics allows companies to understand how they are performing and identify areas for improvement. Good metrics should be consistent with company strategies and focus on customer needs. The chapter provides examples of different types of metrics companies can use to measure costs, inventory levels, customer service, and overall supply chain performance. These metrics can be classified in various categories and should be integrated both within and across companies to effectively drive improvement.
This document discusses various approaches to measuring supply chain performance, including the Balanced Scorecard, SCOR model, Logistics Scoreboard, activity-based costing, and economic value added. It provides examples of performance measures that can be used across different areas of the supply chain, including customer service, processes, purchasing, manufacturing, logistics, administration, and marketing. Key frameworks like the Balanced Scorecard emphasize the importance of using a mix of financial and non-financial metrics to evaluate performance from multiple perspectives.
This document discusses measuring supply chain performance. It classifies supply chain performance measures into qualitative measures like customer satisfaction and quantitative measures like response time and delivery performance. It states that performance management systems measure both financial and non-financial indicators to improve visibility and transparency. Measuring supply chain performance supports better decision making, communication, provides performance feedback, and motivates behavior. It then outlines various categories for classifying supply chain performance measures, including price performance, cost effectiveness, time-related, administration/efficiency, internal customer satisfaction, supplier performance, and logistics metrics.
This chapter discusses the importance of performance measurement in supply chains. It explains that establishing metrics allows companies to understand how they are performing and identify areas for improvement. Good metrics should be consistent with company strategies and focus on customer needs. The chapter provides examples of different types of metrics companies can use to measure costs, inventory levels, customer service, and overall supply chain performance. These metrics can be classified in various categories and should be integrated both within and across companies to effectively drive improvement.
Operational Transformation in Banking OperationsRajeev De Roy
This document discusses various aspects of operational transformation for organizations. It covers topics like lean process transformation, productivity enhancement, resource rationalization, operational policies, procedures, and control checklists. The goal is to improve efficiency, reduce costs, enhance revenue, and manage risks through operational excellence initiatives. Various tools and approaches are mentioned that can help analyze processes, optimize resources, standardize operations, and monitor performance. Case studies show benefits organizations have realized in areas like productivity, costs, quality and turnaround times through operational transformation.
The document provides guidance on effective pricing strategies during difficult economic times. It recommends reaffirming your pricing strategy while gaining a thorough understanding of customers, costs, and competitors. Key steps include segmenting customers, establishing pricing metrics and incentives, developing options based on analysis rather than emotions, and training salespeople on pricing fundamentals. Tools like pricing simulations and reporting systems can help implement and monitor the pricing strategy. The overall aim is to optimize pricing decisions and maximize profitability.
This document discusses improving supply chain performance by linking it to the balanced scorecard. It outlines current supply chain measures and perspectives in the balanced scorecard. It then proposes linking the two by identifying performance measures that align the internal, financial, innovation/learning, and customer perspectives of the balanced scorecard with goals like unit cost reduction, time reduction, waste reduction, and flexible response in the supply chain. Aligning key performance indicators across these perspectives can help optimize supply chain performance.
Strategic cost management is a program that businesses use to regularly identify and analyze cost drivers to lower costs and maximize value. It allows businesses to not only lower costs but gain a competitive advantage. Strategic cost management involves creating a strategic plan, prioritizing operations, and ensuring efficient use of resources. Once implemented, it brings transparency to costs and allows managers to make timely cost decisions. It can also show which customers are most or least profitable. The framework includes core functions, value-adding activities, and support activities. Effective strategic cost management requires support from top management, integrated information systems, and cross-functional teams.
Strategic Cost Management – A Profitability Tool, Bp, Fla, November 20, 2010Barrett Peterson
This document summarizes a presentation given to the Finance Leaders Association on strategic cost management. It discusses various global economic and political drivers that impact strategic costs, such as commodity prices, trade agreements, and banking regulations. It also outlines considerations for current strategic costs, such as healthcare reforms, deficit reduction proposals, and trade discussions. Finally, it discusses the role of strategic cost management in impacted decisions regarding product design and distribution channel choices.
The document discusses key concepts in performance measurement and strategic information management. It emphasizes that consistent, accurate data across business areas provides real-time information to evaluate processes, products and services to meet objectives and customer needs. It also discusses leading practices like developing performance indicators reflecting customer needs, using comparative data to improve, and involving all employees in measurement activities.
The document discusses the need for greater collaboration between CMOs and CIOs in leveraging technology to improve customer experiences. It notes tensions in their existing relationship with different perceptions of effectiveness. CMOs and CIOs must work to understand each other's perspectives and priorities. Developing a strategic partnership can amplify their unique abilities to understand customers and deliver experiences through technology over time, moving from early stages of conflict to collaboration and joint creation of customer value.
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
This document provides an overview of management and organizational behavior concepts relevant to the purchasing function. It discusses key topics such as:
- The definition of management and organizational behavior, and the importance of understanding individual, group, and organizational levels of analysis.
- The management process of planning, organizing, leading, and controlling.
- Organizational structures like centralized and decentralized purchasing, and examples of purchasing department structures.
- Additional concepts that impact the purchasing function such as stakeholder management, communication flows, and organizational culture.
The document aims to outline fundamental management principles and how they relate to effective management within the purchasing and supply chain context. It provides a comprehensive introduction to the subject area.
This document discusses value chain analysis, which was first proposed by Michael Porter in 1985. It involves identifying a firm's primary and support activities that add value to its products or services and analyzing them to reduce costs or increase differentiation. The key stages of value chain analysis for strategic cost management are identifying activities, establishing their costs and importance, comparing costs, identifying cost drivers, and finding opportunities to reduce costs or improve value through internal and external linkages. This allows firms to assess their competitive positioning and strategically improve quality, reduce time and costs, and increase benefits for both the firm and partners in the value chain.
This document discusses benchmarking logistics processes. It defines competitive benchmarking as measuring products, services, processes, and practices against industry leaders. Benchmarking the logistics process involves mapping out the supply chain as a series of steps, identifying critical points where issues could disrupt the entire process, and using benchmarking to improve these points. Key aspects to benchmark include suppliers, distributors, interfaces, and setting logistics performance indicators to continuously monitor critical measures of success.
BP Presentation. Strategic Cost Management - A Profitability Tool, ICPAS Nort...Barrett Peterson
This document provides an overview of strategic cost management concepts presented by Barrett Peterson to the ICPAS North Shore Chapter on August 18, 2015. It discusses cost management resources, environmental factors, current considerations, the role of strategic cost management in impacted decisions, cost and profit management time frames, costing methods, product costing, and other costing applications and examples.
The document discusses strategic cost management (SCM) as an important tool for gaining competitive advantage. SCM analyzes costs in the broader context of a firm's overall value chain. It helps firms understand their cost structures to develop superior strategies. SCM uses tools like value chain analysis, activity-based costing, and analysis of cost drivers to examine how firms can configure activities to reduce costs or pursue different competitive strategies like cost leadership or differentiation.
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.
Sales and Operations Planning, Supported by Demand Management Capability, Sus...Innovation Enterprise
- Sonoco Products Company realized in 2007 that traditionally organizing its supply chain functions was not improving processes as needed, so it adopted a cross-functional Sales and Operations Planning (S&OP) process starting with its paper-based supply chains.
- S&OP provided a standardized monthly planning cycle and integrated demand management to better synchronize information, materials, and dollars flows across the company's push-based paper supply chain and pull-based conversion supply chains.
- Implementing S&OP and demand management capabilities with Logility software helped Sonoco improve key metrics like perfect order performance, cash gap, inventory levels, and achieve better demand visibility, responsiveness, and profitability across its global supply chains.
This document discusses vendor rating systems. Vendor rating systems evaluate and rank vendors based on various performance criteria such as delivery, quality, price, and other factors. These ratings help buyers select vendors, facilitate negotiations, provide feedback to vendors, and encourage continuous performance improvement. The document outlines several specific vendor rating methods including categorical, weighted point, and cost ratio plans that assign scores or rankings to vendors based on different weighted factors and costs.
Benchmarking involves measuring an organization's key processes and comparing metrics to industry standards and best practices. This identifies areas for improvement and helps set targets. The benefits of benchmarking include providing data to make strategic decisions, improving processes, and reducing costs. It is a continuous process that involves planning goals, gathering data, analyzing results, implementing changes, and recalibrating metrics over time.
The document discusses strategic cost management, cost reduction, and value engineering. It defines strategic cost management as using cost information to develop superior strategies. It describes cost reduction as permanently lowering unit costs without compromising quality or suitability. Value engineering is defined as systematically analyzing functions to explore ways to improve performance and increase the value of products and services.
The document discusses reverse logistics challenges and benefits. It defines reverse logistics as the process of moving used products back up the supply chain for repair, reuse, refurbishing, resale, recycling, or disposal. It outlines differences between reverse logistics and closed-loop supply chains. It also provides recommendations for organizations to establish effective reverse logistics programs, including avoiding unnecessary returns, establishing return centers, recovering assets, and using information systems to improve visibility.
The document discusses the differences between financial and managerial accounting. It provides examples of information that would be useful for managers but not required in external financial reports, such as details on revenue sources and expenses. While training and advertising are not capitalized under GAAP, managerial reports could include additional performance measures to aid internal decision making. Management accountants have responsibilities for planning, controlling performance, and ensuring accountability. They must understand how measurements may influence behavior and introduce new systems carefully.
This presentation discusses the importance of procurement policies, contract management, supplier management, and performance monitoring. It outlines the benefits of these practices, which include cost savings, compliance, visibility, efficiency, and risk reduction. Specific policies and tools are also presented, such as developing procurement guidelines, tracking purchases against contracts, consolidating supply chains, defining key performance indicators for suppliers, and using software to evaluate suppliers.
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/.
This document summarizes a study on logistics performance measurement in Thailand. It developed an assessment framework to measure performance across industries based on key performance indicators related to cost, time, and reliability dimensions. The framework was used to assess 200 best-in-class companies across 5 industries in Thailand. Results showed differences in performance across industries. Additionally, the study compared Thailand's performance based on the World Bank's Logistics Performance Index to perceptions of logistics performance from the 200 surveyed companies. The study aims to improve Thailand's logistics performance through benchmarking.
This document discusses improving supply chain performance by linking it to the balanced scorecard. It outlines current supply chain measures and perspectives in the balanced scorecard. It then proposes linking the two by identifying performance measures that align the internal, financial, innovation/learning, and customer perspectives of the balanced scorecard with goals like unit cost reduction, time reduction, waste reduction, and flexible response in the supply chain. Aligning key performance indicators across these perspectives can help optimize supply chain performance.
Strategic cost management is a program that businesses use to regularly identify and analyze cost drivers to lower costs and maximize value. It allows businesses to not only lower costs but gain a competitive advantage. Strategic cost management involves creating a strategic plan, prioritizing operations, and ensuring efficient use of resources. Once implemented, it brings transparency to costs and allows managers to make timely cost decisions. It can also show which customers are most or least profitable. The framework includes core functions, value-adding activities, and support activities. Effective strategic cost management requires support from top management, integrated information systems, and cross-functional teams.
Strategic Cost Management – A Profitability Tool, Bp, Fla, November 20, 2010Barrett Peterson
This document summarizes a presentation given to the Finance Leaders Association on strategic cost management. It discusses various global economic and political drivers that impact strategic costs, such as commodity prices, trade agreements, and banking regulations. It also outlines considerations for current strategic costs, such as healthcare reforms, deficit reduction proposals, and trade discussions. Finally, it discusses the role of strategic cost management in impacted decisions regarding product design and distribution channel choices.
The document discusses key concepts in performance measurement and strategic information management. It emphasizes that consistent, accurate data across business areas provides real-time information to evaluate processes, products and services to meet objectives and customer needs. It also discusses leading practices like developing performance indicators reflecting customer needs, using comparative data to improve, and involving all employees in measurement activities.
The document discusses the need for greater collaboration between CMOs and CIOs in leveraging technology to improve customer experiences. It notes tensions in their existing relationship with different perceptions of effectiveness. CMOs and CIOs must work to understand each other's perspectives and priorities. Developing a strategic partnership can amplify their unique abilities to understand customers and deliver experiences through technology over time, moving from early stages of conflict to collaboration and joint creation of customer value.
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
This document provides an overview of management and organizational behavior concepts relevant to the purchasing function. It discusses key topics such as:
- The definition of management and organizational behavior, and the importance of understanding individual, group, and organizational levels of analysis.
- The management process of planning, organizing, leading, and controlling.
- Organizational structures like centralized and decentralized purchasing, and examples of purchasing department structures.
- Additional concepts that impact the purchasing function such as stakeholder management, communication flows, and organizational culture.
The document aims to outline fundamental management principles and how they relate to effective management within the purchasing and supply chain context. It provides a comprehensive introduction to the subject area.
This document discusses value chain analysis, which was first proposed by Michael Porter in 1985. It involves identifying a firm's primary and support activities that add value to its products or services and analyzing them to reduce costs or increase differentiation. The key stages of value chain analysis for strategic cost management are identifying activities, establishing their costs and importance, comparing costs, identifying cost drivers, and finding opportunities to reduce costs or improve value through internal and external linkages. This allows firms to assess their competitive positioning and strategically improve quality, reduce time and costs, and increase benefits for both the firm and partners in the value chain.
This document discusses benchmarking logistics processes. It defines competitive benchmarking as measuring products, services, processes, and practices against industry leaders. Benchmarking the logistics process involves mapping out the supply chain as a series of steps, identifying critical points where issues could disrupt the entire process, and using benchmarking to improve these points. Key aspects to benchmark include suppliers, distributors, interfaces, and setting logistics performance indicators to continuously monitor critical measures of success.
BP Presentation. Strategic Cost Management - A Profitability Tool, ICPAS Nort...Barrett Peterson
This document provides an overview of strategic cost management concepts presented by Barrett Peterson to the ICPAS North Shore Chapter on August 18, 2015. It discusses cost management resources, environmental factors, current considerations, the role of strategic cost management in impacted decisions, cost and profit management time frames, costing methods, product costing, and other costing applications and examples.
The document discusses strategic cost management (SCM) as an important tool for gaining competitive advantage. SCM analyzes costs in the broader context of a firm's overall value chain. It helps firms understand their cost structures to develop superior strategies. SCM uses tools like value chain analysis, activity-based costing, and analysis of cost drivers to examine how firms can configure activities to reduce costs or pursue different competitive strategies like cost leadership or differentiation.
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.
Sales and Operations Planning, Supported by Demand Management Capability, Sus...Innovation Enterprise
- Sonoco Products Company realized in 2007 that traditionally organizing its supply chain functions was not improving processes as needed, so it adopted a cross-functional Sales and Operations Planning (S&OP) process starting with its paper-based supply chains.
- S&OP provided a standardized monthly planning cycle and integrated demand management to better synchronize information, materials, and dollars flows across the company's push-based paper supply chain and pull-based conversion supply chains.
- Implementing S&OP and demand management capabilities with Logility software helped Sonoco improve key metrics like perfect order performance, cash gap, inventory levels, and achieve better demand visibility, responsiveness, and profitability across its global supply chains.
This document discusses vendor rating systems. Vendor rating systems evaluate and rank vendors based on various performance criteria such as delivery, quality, price, and other factors. These ratings help buyers select vendors, facilitate negotiations, provide feedback to vendors, and encourage continuous performance improvement. The document outlines several specific vendor rating methods including categorical, weighted point, and cost ratio plans that assign scores or rankings to vendors based on different weighted factors and costs.
Benchmarking involves measuring an organization's key processes and comparing metrics to industry standards and best practices. This identifies areas for improvement and helps set targets. The benefits of benchmarking include providing data to make strategic decisions, improving processes, and reducing costs. It is a continuous process that involves planning goals, gathering data, analyzing results, implementing changes, and recalibrating metrics over time.
The document discusses strategic cost management, cost reduction, and value engineering. It defines strategic cost management as using cost information to develop superior strategies. It describes cost reduction as permanently lowering unit costs without compromising quality or suitability. Value engineering is defined as systematically analyzing functions to explore ways to improve performance and increase the value of products and services.
The document discusses reverse logistics challenges and benefits. It defines reverse logistics as the process of moving used products back up the supply chain for repair, reuse, refurbishing, resale, recycling, or disposal. It outlines differences between reverse logistics and closed-loop supply chains. It also provides recommendations for organizations to establish effective reverse logistics programs, including avoiding unnecessary returns, establishing return centers, recovering assets, and using information systems to improve visibility.
The document discusses the differences between financial and managerial accounting. It provides examples of information that would be useful for managers but not required in external financial reports, such as details on revenue sources and expenses. While training and advertising are not capitalized under GAAP, managerial reports could include additional performance measures to aid internal decision making. Management accountants have responsibilities for planning, controlling performance, and ensuring accountability. They must understand how measurements may influence behavior and introduce new systems carefully.
This presentation discusses the importance of procurement policies, contract management, supplier management, and performance monitoring. It outlines the benefits of these practices, which include cost savings, compliance, visibility, efficiency, and risk reduction. Specific policies and tools are also presented, such as developing procurement guidelines, tracking purchases against contracts, consolidating supply chains, defining key performance indicators for suppliers, and using software to evaluate suppliers.
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/.
This document summarizes a study on logistics performance measurement in Thailand. It developed an assessment framework to measure performance across industries based on key performance indicators related to cost, time, and reliability dimensions. The framework was used to assess 200 best-in-class companies across 5 industries in Thailand. Results showed differences in performance across industries. Additionally, the study compared Thailand's performance based on the World Bank's Logistics Performance Index to perceptions of logistics performance from the 200 surveyed companies. The study aims to improve Thailand's logistics performance through benchmarking.
The document discusses logistics outsourcing and the differences between third-party logistics (3PL) and fourth-party logistics (4PL). It defines 3PL as outsourcing logistics functions like transportation and warehousing to external providers. 3PL providers range from basic to advanced, offering value-added services. 4PL providers go a step further by integrating the supply chain resources, capabilities, and technologies of multiple organizations. While 3PL focuses on individual functions, 4PL manages the entire supply chain for a client.
Third-party logistics (3PL) providers are companies that provide logistics services like transportation, warehousing, and distribution for other companies. 3PLs allow companies to focus on their core business while outsourcing logistics functions. Common types of 3PLs include transportation-based, warehouse/distribution-based, and financial-based providers. Using 3PLs can help companies save time and money, expand markets, and focus on their strengths. However, there are also risks like loss of control and visibility with customers. Choosing the right 3PL requires thorough due diligence and establishing clear expectations, performance measures, and a process for managing the relationship.
International logistics involves managing the flow of materials, services, and information internationally. It allows firms to implement cost-saving programs like JIT and EDI. International logistics managers must consider transportation infrastructure, modes of transport like ocean vessels, airfreight, and their associated costs and limitations. They must also address international inventory, packaging, storage, and documentation issues like bills of lading. Firms can utilize centralized, decentralized, or outsourced logistics management approaches. The internet impacts supply chains and requires 24/7 order and customer support. Security and environmental regulations also influence international logistics planning.
The document discusses third party logistics (3PL) providers. It begins by defining 1PL, 2PL, 3PL and 4PL providers and their roles in the supply chain. It then covers the evolution of 3PL, services provided, benefits of using 3PL, types of 3PL providers including transportation-based, warehouse/distribution-based and more. New technologies in 3PL and relationship management are also discussed. The document concludes with a case study on selecting a 3PL using multi-criteria decision making.
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)
Kuldeep Uttam provides an overview of inventory management concepts in 3 pages. He defines inventory as physical resources held for sale or transformation. The purpose of inventory management is to determine order quantities and timing. Inventories include raw materials, work-in-progress, finished goods, and supplies. Inventory management aims to balance holding versus ordering costs. Methods include economic order quantity models, reorder points, and ABC classification to prioritize inventory items. The document provides definitions and examples of key inventory management terms and techniques.
The document provides information on international logistics functions and processes. It discusses:
1) Picking up containers from wharves, which are structures where ships dock to load and unload cargo. Proper safety procedures are important when unloading large shipping containers.
2) Unloading containers following specific safety steps, such as using stands, having a spotter, and moving headers slowly to prevent damage or injury.
3) Storing containers temporarily in warehouses near ports to quickly unload and reload vessels and maximize efficiency in commercial ports.
Integrated logistics management involves coordinating the flow of goods from suppliers to customers. It requires cross-functional collaboration within a company and partnerships with external partners. The goal is to rapidly and efficiently fulfill customer needs with minimum inventory, transportation, and production variances. Effective integrated logistics considers customer demands, acquires necessary resources, and optimizes distribution networks.
This document outlines the key topics and objectives covered in a performance management course. It discusses determining individual performance, the purposes of performance management, criteria for an effective system, and different approaches to measurement. The comparative, attribute, behavioral, results, and quality approaches are described in detail. Sources of performance information like managers, peers, subordinates, self, and customers are also analyzed. The types of rater errors in evaluations are explained as halo effect, horns effect, leniency, and strictness. Preventative measures like training and framing performance dimensions are suggested. Appraisal politics where ratings are distorted for goals is also defined.
The document discusses performance management software, key performance indicators (KPIs), and how to effectively measure and track organizational goals and processes. It provides examples of how software tools like SAP and business intelligence solutions can be used to define KPIs, collect performance data, and visualize metrics. Guidelines are given for identifying meaningful KPIs aligned with goals, collecting and analyzing measurement data, and using KPIs to evaluate and improve processes.
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
This document discusses strategic control and continuous improvement. It defines strategic control as tracking strategy implementation, detecting changes, and making adjustments. There are four types of strategic control: premise control checks strategy assumptions; strategic surveillance monitors internal/external events; special alert control reconsiders strategy due to unexpected events; and implementation control assesses strategy changes based on incremental actions. Continuous improvement focuses on customer satisfaction, measurement, and process improvement through techniques like total quality management (TQM), six sigma, ISO 9001, and balanced scorecards.
The document discusses the balanced scorecard performance measurement framework. It describes the balanced scorecard as measuring organizational performance across four perspectives: financial, customer, internal business processes, and learning and growth. Each perspective has objectives, measures, targets, and initiatives. The balanced scorecard links performance measures to strategy and helps organizations communicate and monitor their strategy.
The document discusses performance measurement in logistics. It defines key logistics costs including direct, indirect, capital and overhead costs. It also discusses how to categorize costs based on activities and allocate costs over appropriate time periods. A logistics audit aims to identify areas for improvement and unlock hidden value in the logistics system through a thorough independent review.
The document discusses performance evaluation and control. It outlines the basic performance pyramid with mission, vision, goals/objectives, strategies, and success drivers at the top feeding into performance measures at the bottom. It emphasizes that performance measures should aim for the long-term and be forward-thinking. Both financial and non-financial measures are needed, with an emphasis on lead indicators over lag indicators. A comprehensive performance measurement system addresses financial performance, customer satisfaction, internal business processes, and organizational learning and growth.
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.
The document discusses using a balanced scorecard and strategy maps to drive corporate performance. It explains that a balanced scorecard measures performance across four perspectives: financial, customer, internal processes, and learning and growth. Strategy maps translate a company's strategy into objectives and measures across these four perspectives. The document provides examples of strategy maps for corporate functions like HR, IT, finance and marketing to cascade goals and measures down from the corporate level. It also discusses identifying key performance indicators to measure progress towards strategic objectives.
The document discusses key aspects of performance excellence and customer-driven organizations. It outlines a philosophy of aligning employees around customer satisfaction through continuous improvement. Excellent organizations focus on the future, plan well, and have cultures and tools to manage change. Metrics like customer retention, market share, and growth indicate customer-driven excellence beyond just reducing errors. The balanced scorecard is a mechanism to report results to stakeholders using meaningful performance indicators. Process management looks at the enterprise system and focus on innovation, agility, and interconnection.
The document discusses using a balanced scorecard and strategy map to drive corporate performance. It provides an overview of key components:
1) A balanced scorecard balances financial and non-financial metrics across four perspectives: financial, customer, internal processes, and learning and growth.
2) A strategy map translates a company's strategy and helps identify strategic objectives and key performance indicators (KPIs) within each perspective.
3) KPIs should be measurable, relevant to objectives, and help evaluate progress towards strategic goals. Different types of KPIs include productivity, quality, profitability and more.
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 document discusses the balanced scorecard framework. It notes that traditional reports focus on lagging financial indicators rather than leading indicators that will determine future performance. The balanced scorecard translates strategy into objectives and measures across four perspectives: financial, customer, internal processes, and learning and growth. It provides a more balanced view of organizational performance than financial measures alone by including operational measures that drive future financial results.
Mcs 2013 m1 - including key success variablesVignesh RV
This document discusses characteristics of management control systems and factors that influence their design. It provides details on diagnostic, interactive, beliefs and boundary controls. It also discusses managerial styles, corporate culture, organization structure, and communication structure as factors influencing design. Finally, it discusses key variables that are important for different industries to monitor, such as availability of raw materials for tea industry and customer needs/service for service companies.
This document provides an overview of developing a performance measurement system using a balanced scorecard approach. It discusses 6 key sections: 1) introducing performance measurement, 2) measurement as a management support system, 3) the balanced scorecard, 4) developing a customized balanced scorecard, 5) setting targets and incentives, and 6) implementing a new performance management system focused on continuous improvement. The document emphasizes developing a balanced set of measures across financial, customer, internal process, and learning/growth perspectives to drive strategic implementation and improvement.
This document provides an overview of developing a performance measurement system using a balanced scorecard approach. It discusses 6 key sections: introduction to performance measurement; measurement as a management support system; the balanced scorecard; developing a customized balanced scorecard; target setting and incentives; and implementing a new performance management system. The document includes examples of balanced scorecards and outlines the steps to create customized balanced scorecards that align measures to strategic objectives.
This document provides an overview of performance measurement and developing a balanced scorecard across 6 sections. It includes 3 charts on performance measurement systems that demonstrate a balanced scorecard decomposes strategy implementation to all organization levels and identifies improvement opportunities. The balanced scorecard is shown to be an integral part of business planning that measures focused performance across financial, customer, internal process, and learning/growth perspectives.
The changing business environment manager's perspectiveLou Foja
Management is expected to ensure an organization uses its resources wisely, operates profitably, pays its debts, and abides by laws and regulations. To fulfill these expectations, managers establish goals, objectives, and strategic plans to guide the organization's activities. If organizations want to prosper, they must identify critical success factors like satisfying customer needs, developing efficient processes, and fostering employee career growth. Continuous improvement is needed to avoid complacency, and tools like just-in-time, total quality management, and activity-based management help organizations improve through a focus on quality, efficiency and cost reduction.
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.
Lean Fundamentals And Line Design 06 04 01Dan Junkins
This document provides an overview and summary of a Lean Fundamentals seminar presented by the Lean Supplier Association in Austin, Texas. The 3-page summary covers the following key points:
1. It introduces lean thinking principles like eliminating waste, specifying value from the customer perspective, and making products flow without interruption.
2. It describes tools used in lean like value stream mapping, the 5S methodology of sorting, setting in order, shining, standardizing, and sustaining workplace organization.
3. It emphasizes the importance of measurements and metrics in lean to establish baselines, monitor improvements, and ensure goals are being met. A hierarchy of measurements across different organizational levels is recommended.
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.
This document discusses nurturing student talent and development. It begins by establishing the context of faculty playing a significant role in grooming students. It then discusses the nature vs nurture debate as it relates to talent, with talent being partly innate and partly developed through environmental factors. The document outlines various imperatives and challenges for talent nurturing, including engaging millennial students. It proposes using the RIASEC typology to understand student personalities and a total quality management perspective. The rest of the document shares experiences and initiatives for nurturing talent, emphasizing a holistic and shared approach.
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.
The document discusses ways to internalize knowledge and research. It suggests understanding learning objectives, thoroughly understanding new concepts, taking notes, recapping and reviewing. It also recommends thinking about personal relevance, connections to other concepts, examples from experience, and applying concepts to teaching. The document provides examples of internalizing the topic of behavioral finance through reading, watching movies, collecting news articles, developing cases, discussing with others, and incorporating feedback. It emphasizes that internalizing helps enhance understanding and engage with the subject as a passion.
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.
The document discusses pedagogical challenges in the digital environment. It notes that today's students are accustomed to digital devices and have short attention spans. This presents challenges for teachers who must compete with technology for students' attention. The digital environment also allows students more control over their learning in terms of time, place, path, and pace. Teachers now have a role as facilitators helping students convert knowledge into practice. They must use a variety of strategies and be digitally competent to engage Gen Y students. While technology provides opportunities, it also poses challenges as multiple modes of learning are now possible beyond just classroom teaching.
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.
1. The document discusses the need for value-based education and social responsibility at the ABV-Indian Institute of Information Technology & Management. It argues that students need to be sensitized to social responsibility from an early stage.
2. It advocates adopting Gandhi's concept of trusteeship, where members of society act as trustees of wealth created by collective efforts. A shift is needed from consumerism to conservation.
3. Value-based education should incorporate trusteeship perspectives, a holistic and community-based approach, and teach socially responsible education through mutual interaction and inter-communion. This will help develop balanced, socially conscious individuals and benefit society.
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
High-Quality IPTV Monthly Subscription for $15advik4387
Experience high-quality entertainment with our IPTV monthly subscription for just $15. Access a vast array of live TV channels, movies, and on-demand shows with crystal-clear streaming. Our reliable service ensures smooth, uninterrupted viewing at an unbeatable price. Perfect for those seeking premium content without breaking the bank. Start streaming today!
https://rb.gy/f409dk
The Steadfast and Reliable Bull: Taurus Zodiac Signmy Pandit
Explore the steadfast and reliable nature of the Taurus Zodiac Sign. Discover the personality traits, key dates, and horoscope insights that define the determined and practical Taurus, and learn how their grounded nature makes them the anchor of the zodiac.
𝐔𝐧𝐯𝐞𝐢𝐥 𝐭𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐄𝐧𝐞𝐫𝐠𝐲 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 𝐰𝐢𝐭𝐡 𝐍𝐄𝐖𝐍𝐓𝐈𝐃𝐄’𝐬 𝐋𝐚𝐭𝐞𝐬𝐭 𝐎𝐟𝐟𝐞𝐫𝐢𝐧𝐠𝐬
Explore the details in our newly released product manual, which showcases NEWNTIDE's advanced heat pump technologies. Delve into our energy-efficient and eco-friendly solutions tailored for diverse global markets.
Efficient PHP Development Solutions for Dynamic Web ApplicationsHarwinder Singh
Unlock the full potential of your web projects with our expert PHP development solutions. From robust backend systems to dynamic front-end interfaces, we deliver scalable, secure, and high-performance applications tailored to your needs. Trust our skilled team to transform your ideas into reality with custom PHP programming, ensuring seamless functionality and a superior user experience.
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART KALYAN CHART
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART INDIA MATKA KALYAN SATTA MATKA 420 INDIAN MATKA SATTA KING MATKA FIX JODI FIX FIX FIX SATTA NAMBAR MATKA INDIA SATTA BATTA
Cover Story - China's Investment Leader - Dr. Alyce SUmsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Herman Kienhuis
Presentation by Herman Kienhuis (Curiosity VC) on developments in AI, the venture capital investment landscape and Curiosity VC's approach to investing, at the alumni event of Amsterdam Business School (University of Amsterdam) on June 13, 2024 in Amsterdam.
Enhancing Adoption of AI in Agri-food: IntroductionCor Verdouw
Introduction to the Panel on: Pathways and Challenges: AI-Driven Technology in Agri-Food, AI4Food, University of Guelph
“Enhancing Adoption of AI in Agri-food: a Path Forward”, 18 June 2024
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
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