Upload
thaot
View
221
Download
1
Embed Size (px)
Citation preview
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 1/27
Chapter 13:
Supply Chain Performance
Measurement
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 2/27
Chapter 13 Management of Business Logistics, 7 th Ed. 2
Learning Objectives - After reading this
chapter, you should be able to do the following:Understand the scope and importance ofperformance measurement.
Explain the characteristics of goodperformance measures.Discuss cost and service performancemeasurement and quantification.Understand transaction and revenuemeasurement and quantification.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 3/27
Chapter 13 Management of Business Logistics, 7 th Ed. 3
Learning ObjectivesExplain supply chain channel measurement.Discuss overall supply chain metrics.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 4/27
Chapter 13 Management of Business Logistics, 7 th Ed. 4
Logistics Profile: Micros
and More…A Final Sequel “If you can‟t measure it, you can‟t manage it.”;Micros and More was uncertain if their recentgains were appropriate.Micros and More was unsure about „wherethey are‟ and „where they have been‟; thismakes it difficult to evaluate performance.
Developing a set of performance metrics willhelp Micros and More chart a course for thefuture and evaluate their performance alongthe way.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 5/27
Chapter 13 Management of Business Logistics, 7 th Ed. 5
Supply Chain Performance
Measurement: IntroductionThe Micros and More logistics profilepoints out a very important issue for all
organizations: Each needs performancemeasurements or metrics. Achieving efficiency and effectivenessobjectives requires a set of standards tocompare to actual performance.These standards are called metrics.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 6/27
Chapter 13 Management of Business Logistics, 7 th Ed. 6
Dimensions of
Performance Metrics Establishing appropriate metrics is a complexproblem.
Measuring inappropriate performance canlead to a company chasing the wrong goal.Metrics drive behavior --- what youmeasure is what you get.
Logistics cost metrics should focus on thetotal supply chain, not on just one link.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 7/27
Chapter 13 Management of Business Logistics, 7 th Ed. 7
Figure 13-1
Raising the Performance Bar
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 8/27
Chapter 13 Management of Business Logistics, 7 th Ed. 8
Overview of Performance
Measurement1
Figure 13-2 contains a list of performancemeasures captured on a regular basis within
companies.Knowing what metrics to use is a veryimportant issue.Figure 13-3 provides some insight into thecharacteristics of good performancemeasures.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 9/27
Chapter 13 Management of Business Logistics, 7 th Ed. 9
Figure 13-2 Measures Captured on a Regular
Basis Within the Company
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 10/27
Chapter 13 Management of Business Logistics, 7 th Ed. 10
Figure 13-3 Characteristics of
Good Measures
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 11/27
Chapter 13 Management of Business Logistics, 7 th Ed. 11
Other Useful Performance
Guidelines2
The metrics must beconsistent with overallcorporate strategy.The metrics must focuson customer needs andexpectations.Prioritize your metrics.
Focus upon processesnot functions.
Use a balancedapproach in selectingand developing metrics.Precise costmeasurement is animportant aspect forgauging improvement.
Use technology toenhance efficientperformancemeasurement.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 12/27
Chapter 13 Management of Business Logistics, 7 th Ed. 12
On the Line:
Measuring PerformanceThe current economic slowdown has sentmany companies looking for ways to cut
costs and improve productivity withoutincreasing resources.By establishing performance metricsthroughout the supply chain, companies aremore likely to reach overall corporate goals.Systems such as KPIs, SCOR, and e-SCORare being used to develop these metrics.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 13/27
Chapter 13 Management of Business Logistics, 7 th Ed. 13
Evolution of
Metrics Utilization Most organizations go through several phasesin the development of meaningful metrics:
Stage 1 – awareness of the importance ofusing the appropriate metric
Stage 2 – developing the actual metric
Stage 3 – performance improvementStage 4 – integration internally and acrossthe supply chain
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 14/27
Chapter 13 Management of Business Logistics, 7 th Ed. 14
Performance
Categories There are a number of approaches that can beused to classify performance metrics.
The next two slides illustrate performancemetrics:Figure 13-4 identifies four principle processmeasure categories.
Figure 13-5 shows various customer servicemetrics and how important they are tocustomers.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 15/27
Chapter 13 Management of Business Logistics, 7 th Ed. 15
Figure 13-4
Process Measure Categories
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 16/27
Chapter 13 Management of Business Logistics, 7 th Ed. 16
Figure 13-5 Do Customers Use TheseMeasures to Evaluate Your Performance?
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 17/27
Chapter 13 Management of Business Logistics, 7 th Ed. 17
Figure 13-6Logistics Quantification Pyramid
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 18/27
Chapter 13 Management of Business Logistics, 7 th Ed. 18
Another Approach toMetric Classification
The next four slides demonstrate other approaches tometric classification:
Figures 13-7 and 13-8 illustrate for ABC PowerTools, cost and management of inventory metrics.Figure 13-9 shows basic logistics service outputsor service performance for metrics development.Figure 13-10 shows the results of a 1999 surveyof the percentage of companies that measureperformance of each of the five service outputs aswell as the percentage that measures value.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 19/27
Chapter 13 Management of Business Logistics, 7 th Ed. 19
Figure 13-7Distribution Inventory Costs
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 20/27
Chapter 13 Management of Business Logistics, 7 th Ed. 20
Figure 13-8Distribution Inventory Management
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 21/27
Chapter 13 Management of Business Logistics, 7 th Ed. 21
Figure 13-9 Logistics OutputsThat Influence Customer Service
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 22/27
Chapter 13 Management of Business Logistics, 7 th Ed. 22
Figure 13-10Service Measurement
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 23/27
Chapter 13 Management of Business Logistics, 7 th Ed. 23
Supply ChainMetrics
Supply chain metrics are very different fromtraditional logistics metrics in that they
measure inter-company performance ratherthan just internal performance.These measures of performance must becommon across the firms in the supply chainto be meaningful.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 24/27
Chapter 13 Management of Business Logistics, 7 th Ed. 24
The Supply Chain OperationsReference (SCOR) Model
This model was attempts to integrate well known conceptsof process reengineering, benchmarking, and processmeasurement into a cross functional relationship by:
Capturing the “as is” state of a process and derive the “to be” future state (reengineering); Quantify the operational performance of similarcompanies and establish “best of class” performance
(benchmarking); and,Characterize and describe the management processesthat will result in “best in class” performance (bestpractice analysis).
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 25/27
Chapter 13 Management of Business Logistics, 7 th Ed. 25
Figure 13-11SCOR is Based on Five DistinctManagement Processes
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 26/27
Chapter 13:Summary and Review Questions
Students should review their knowledge of the chapterby checking out the Summary and Study Questions for
Chapter 13.
8/12/2019 Ch13_Supply Chain Performance Measurement
http://slidepdf.com/reader/full/ch13supply-chain-performance-measurement 27/27
End of Chapter 13 Slides
Supply Chain PerformanceMeasurement