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

Describe concurrent control, What are: Concurrent Control? Feed forward Con...

What are: Concurrent Control? Feed forward Control? Feedback Control? Give an example of each.

Explain what is statistical process control, What is Statistical Process Co...

What is Statistical Process Control? What are the advantages and disadvantages of SPC? Identify two or three applications in your organization that could benefit from Statistical P

Explain the factors that are driving change in the industry, Prepare a brie...

Prepare a brief analysis of the vacation cruise industry using Porters Five Force Analysis. Briefly discuss the nature and strength of each of the five competitive forces. Identify

Explain how will you account for any wastage, You are the branch operations...

You are the branch operations manager for a leading manufacturing company. The following are the bill of materials (BOM), Master Production Schedule, and Inventory Record Sheet for

Objectionable about psychological tests preemployment screen, Utilitarians ...

Utilitarians would not find anything inherently objectionable about psychological tests as long as the interests of all parties were taken into account and given equal consideratio

Find associated costs and revenues increase the capacity, A small firm inte...

A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and reven

Define how team building interventions help an organization, Discuss how te...

Discuss how team building interventions help an organization. Describe activities that are relevant to individuals, the group and organization relationships.

What are the inter-connect factors introduced by cousins, Q. What are the i...

Q. What are the inter-connect factors introduced by Cousins? Cousins introduced the following inter-connected factors to strategically affect supply chain management. The '

Explain which route will maximize lynn''s utility, In the past few years, t...

In the past few years, the traffic problems in Lynn McKell's hometown have gotten worse. Now, Broad Street is congested about half the time. The normal travel time to work for Lynn

Explain how much should the father deposit, On the day his son was born, a ...

On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw $4000 from the fund on his 18th 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