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 core value functioning system, In what ways and with two examples, ...

In what ways and with two examples, did Mentor Graphics fail at not focusing on where they wanted to be in the future, in giving a clear definition to the employees and creating a

Explain what is the minimum number of workstations output, An assembly line...

An assembly line with a number of tasks is to be balanced. The sum of the task times is 100 minutes. The line will operate for 7 hours per day. What is the minimum number of wor

Successful writing at work, Ask qu Write an appropriate proposal—internal, ...

Ask qu Write an appropriate proposal—internal, solicited sales, or unsolicited sales—based on the information contained in one of the following two articles. Assume that your or yo

Explain what are the pros and cons of great lakes coating''s, What are the ...

What are the pros and cons of great lakes coating's not having formalized policies regarding employee's behaviour?

Explain when conflicting medical opinions are presented, When conflicting m...

When conflicting medical opinions are presented, should the advice of a medical expert count more heavily than the opinion of a general physician? Explain your answer.

Important of production planning, Important of Production Planning The i...

Important of Production Planning The importance of production planning maybe judged form the following facts. 1. Production Planning Sets Objectives: Production planning se

Locational break - even analysis, Locational Break - even analysis In ...

Locational Break - even analysis In comparing several  potential location on  an economic  basis,( i., e, tangible factor)  the only  revenues  and costs  that need  to be con

Compute the expected monetary value, Superior Products Inc. is considering ...

Superior Products Inc. is considering two potential equipment alternatives for production of their best selling product line. Option 1 involves proven equipment: Fixed cost investm

How the expected time estimate is calculated in pert, How the expected time...

How the expected time estimate is calculated in PERT ? In PERT the expected time estimate is computed on the basis of Beta distribution of time estimates.

Definitions of performance measurement, Definitions of Performance Measurem...

Definitions of Performance Measurement 1. The first step in a business measurement process is to define the content and objectives of the business - this will help reveal whet

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