Performance measures - operation strategy, Operation Management

Assignment Help:

Performance Measures - Operation Strategy

It is common to find that measures are made of operational factors which do not contribute to the winning of orders, whilst key factors remain unmeasured. Schmenner (1994) labels the former as 'false alarms', and the latter as 'gaps'. In a study of the relationships between business goals and performance measures he questioned senior executives of manufacturing firms from around the world.

He found that machine efficiency, labour efficiency and direct cost reduction were heavily used but, typically, they were false alarms. Conversely, the more difficult to obtain measures of such factors as new product introduction and customer satisfaction were gaps, which ... are widely recognised as important, and at least in our survey sample, it is apparent that companies could become better at managing them and that they do not measure them effectively. The fact that any measures used may well have to be non-financial and approximate should not deter us from using them. It is far better to measure the right thing inexactly and in timely fashion than the wrong thing with great precision and well after the fact.


Related Discussions:- Performance measures - operation strategy

Explain major organizational characteristics, How would you go about analyz...

How would you go about analyzing an organizational structure in terms of creating a work breakdown structure? What are the major organizational characteristics that you would evalu

Explain ethical decision-making framework, In using the Ethical Decision-Ma...

In using the Ethical Decision-Making Framework, a firm should consider the impact of its actions on groups such as its employees, retirees, suppliers, customers, and even the commu

Describe operation management strategy for company, Identify how changes in...

Identify how changes in the external environment may affect the operation management strategy for company. For example, what are the following factors likely to have on operation m

Explain trade-offs among increased wages for unions, What are the trade-off...

What are the trade-offs among increased wages for unions, productivity effects and profitability effects on organizations?

Describe what do the results of the questionnaire suggest, How do you react...

How do you react to conflict? Do you have a typical style as a leader when dealing with a conflict situation? Complete the Conflict Style Questionnaire. What do the results of the

What approaches for organization to improve communications, It seems common...

It seems common in many of todays workplaces that people dont actually talk to one another frequently. We rely on e-mail, or the even less rich communication channel of text messag

Generic operational strategies - operation strategy, Generic Operational St...

Generic Operational Strategies - Operation Strategy Porter (1985) presented five basic generic strategies for business:  1. Cost efficiency - low cost leadership strategy

Column minima method, Column Minima Method: Step 1: Determine  the  ...

Column Minima Method: Step 1: Determine  the  smallest cost in  the first  column  of the  transportation  table. Let it be  C1j  . allocate  Xi1= min ( ai bi ) in the cell

Explain what is the current capacity flow chart for cpc, Define the product...

Define the product you will be offering at College Pretzel Company (CPC) in detail. Create any necessary documentation such as an engineering drawing or a bill of material for the

Explain what type of information must mititech''s suppliers, 1 To ensure th...

1 To ensure that its supply chain can handle a surge in demand, MitiTech should: a. hire additional manufacturing employees b. modify its design to speed up production time

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd