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 marketing infant formula in a developing country, Under what circum...

Under what circumstances, if any, would a firm be justified in marketing infant formula in a developing country?

Explain effective project chartering process, Effective project chartering ...

Effective project chartering process contains multiple project types and projects laid out on a month to month basis.

Explain what leadership style dominates at novo nordisk, A wide array of le...

A wide array of leadership perspectives and theories. In order to synthesize the information, it is best to look at a real-life situation and analyze the leadership styles. Case 14

Explain microsoft visio erd, Review the information currently housed in Huf...

Review the information currently housed in Huffman Trucking%u2019s database, in the Entities and Attributes for Fleet Truck Maintenance file on the virtual Organizations site. (Cus

Explain what types of interpretations might a consumer make, Reflect on the...

Reflect on the GEICO commercials you have seen and those discussed in your textbook. One of the things that these ads do is invite the audience to become involved and make an inter

What is operations strategy, What is operations strategy? Operations ...

What is operations strategy? Operations strategy: According to Slack and Lewis the definition operations strategy: The total pattern of decisions that shape the long

Define what differences exist in their operations strategies, Using the inf...

Using the information about Pal's Sudden Service provided in this chapter, apply Hill's generic strategy framework in a similar fashion as the McDonald's example. How do the strate

Explain level of competitive intensity in an industry, According to Porter,...

According to Porter, what determines the level of competitive intensity in an industry?

Explain why is it important to try to fill in the gaps, When interviewing, ...

When interviewing, why is it important to try to fill in the gaps in a candidate's employment history?

Explain quality characteristic under study takes, Suppose that the specific...

Suppose that the specifications for a part (in inches) are 6.00 ± 0.15, and that the taguchi loss function is estimated to be l(x) = 6,500(x-t)(squared). Determine the estimated lo

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