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 sales-force composite, List the specific weaknesses of each of thes...

List the specific weaknesses of each of these approaches to developing a forecast: a. Consumer surveys. b. Sales-force composite

On what interest rate financial institutions offer loans, After working for...

After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did very well in the first four years. He was now looking for expansion of his busine

Explain formal partnership agreement, Suppose a partnership is set up and o...

Suppose a partnership is set up and operated without a formal partnership agreement. What problems might arise?

Find what is the annual capacity, Given the following data for Albert's fab...

Given the following data for Albert's fabricating production area: Fixed costs for one shift = $60,000 Unit variable cost = $7 Selling price = $12 Number of machines = 5 Number of

How to develop an aggregate plan for product line, DAT, Inc, company needs ...

DAT, Inc, company needs to develop an aggregate plan for its product line. Relevant data are Production time: 1 hour per unit Average labor cost: $10/hour Workweek: 5 d

Compare as well contrast copyrights, Compare and contrast patents, copyrigh...

Compare and contrast patents, copyrights, and trademarks. Evaluate how these provisions can improve the financial position of a small business.

Describe educational and training, How the organization might adopt a techn...

How the organization might adopt a technology trend to improve the quality of the health care delivered to organization members. The board wants to know what are the "Educational a

Explain type of franchise network, Why is it that small businesses like Col...

Why is it that small businesses like Cold Stone Creamery are at a disadvantage as they pursue non-Web-based international expansion strategies? What other international markets is

Explain studies about individual voting decisions, Joan, age 40, is dissati...

Joan, age 40, is dissatisfied with her job. Martin, age 25, is satisfied with his job but thinks the union could provide better benefits beyond the associated costs. Most research

Discuss entrepreneurship is more mundane, INC.. magazine claims, "Entrepren...

INC.. magazine claims, "Entrepreneurship is more mundane than it is sometimes portrayed . . . you don't need to be a person of mythical proportions to be very, very successful in b

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