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

Soft change initiatives - linking strategic, Soft Change Initiatives - Link...

Soft Change Initiatives - Linking Strategic 1. Team working/investors in people (IIP) 2. Empowerment - understanding the value chain and the 'cycle' of failure  3. The l

Explain groups impact health care quality, Identify and discuss how these g...

Identify and discuss how these groups impact health care quality and patient safety: federal oversight agencies, accrediting bodies, and consumers.

Major help Needed STAT, Doc On Call (Q12 – Q14) A company has started a ph...

Doc On Call (Q12 – Q14) A company has started a phone service that uses overseas doctors to provide emergency medical consultations. The responding doctors are based in a country

How do we link strategic and operational change, 1. How do we link strategi...

1. How do we link strategic and operational change?  Answer: Hambrick and Cannella present a 5-step approach:  1. obtain broad inputs at the formulation stage  2. assess o

Explain the simple rate of return on the machine, The Jackson Company has i...

The Jackson Company has invested in a machine that cost $70000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is b

Describe why financial objectives essential for the company, Why do financi...

Why do financial objectives essential for the company to succeed?

Explain the facts on which economic order quantity is depend, Explain the f...

Explain the facts on which Economic Order Quantity is depend Economic Order Quantity depends on two costs:  (i) Inventory procurement costs which consists of expenditure con

Explain changes in the environment, What changes in the environment provide...

What changes in the environment provided the opportunity for the Dewmocracy approach?

Explain what is lori''s productivity, Lori produces "Final Exam Care Packag...

Lori produces "Final Exam Care Packages" for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages. a) What is Lori's productivit

Explain comparable worth, In detail, express your opinion regarding the "Co...

In detail, express your opinion regarding the "Comparable Worth" issue.

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