| Overview | Sample 1 | Sample 2 | Sample 3 | Sample 4 | Sample 5 | Sample 6 | About the Author | |||||||
...The table below shows some traditional metrics, or performance measures, for three functional areas of a typical organization:
| Table 1. Traditional Functional Performance Measures | ||
| Manufacturing | Sales & Marketing | Engineering / R&D |
|
Unit cost Labor cost Labor productivity Quality, scrap rate Plant utilization Plan vs. actual production |
Market share Revenue Sales growth New "hot" products Customer satisfaction |
Functions/features Labor & material cost Time-to-market Award-winning designs Design for manufacturability, assembly, etc. |
Looking at the examples in Table 1, approximately what percent of these traditional functional metrics are common across more than one functional area?
You wouldn't give your sales team tool belts and send them down to the assembly line any more than you would ask your engineers to do market research. While there are obvious benefits to the traditional functional organization (e.g., the ability to focus attention on particular skills needed for various parts of the business), it turns out that the standard performance measures for those functional areas can often hinder supply chain improvements. In this module we'll show examples of how that can happen and describe ways to reduce or avoid the problem...
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SCM105 Specifications
Rating:
4.3 / 5 (1109 ratings)Total Reading Time: Approx. 1 - 2 hours (for average readers)
Word Count: Approx. 11,000 words
Author: Dr. Warren H. Hausman
Professor of Management Science & Engineering, Stanford University
Certificate: Counts toward Fundamentals of Supply Chain Management
Datasheet: 
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Contents
- Introduction
- Alignment of Metrics with Business Strategy
- Service Metrics - Build-to-Stock
- Service Metrics - Build-to-Stock (continued)
- Service Metrics - Build-to-Order
- Inventory Metrics
- Speed Metrics
- Financial Metrics
- Bullwhip Metric
- "Bad" Metrics
- Applying Metrics Across the Entire Supply Chain
- Conclusions
- Test Your Knowledge
- Feedback