Ch 14 Performance Management

Question 1

what are the 5 needs of sc customers?

Answer 1

variety of products
quantity and delivery frequency
sustainability level
product quality
price

Question 2

4 sc partner requirements

Answer 2

cost
quality
sustainability
service

Question 3

why dont financial performance measures work?

Answer 3

costs & profits can be hidden or manipulated

current stock prices dont necessarily reflect that the firm is performing well

Question 4

problems with using costs and profits to gauge performance

Answer 4

uncontrollable environmental forces

inaccurate attribution of cost, revenue, or profit contributions

Question 5

performance variance

Answer 5

difference betwn the standard and actual performance

Question 6

functional silos

Answer 6

departments only concerned with whats going on in their department

Question 7

steps for developing world class performance measures

Answer 7

identify objectives
develop an understanding of each areas set of requirements
design and document performance measures
assure compatibility and strategic focus
implement new system
identify internal and external trends
periodically re-evaluate performance system

Question 8

7 supply chain performance measures

Answer 8

total scm costs
sc cash to cash cycle time
sc production flexibility
sc delivery performance
sc perfect order fulfillment performance
sc e-business performance
sc environmental performance

Question 9

total scm costs

Answer 9

costs to process orders;purchase and manage inventory; information systems

Question 10

sc cash to cash cycle time

Answer 10

avg. # ofdays betwen paying for materials & getting paid by sc partners

Question 11

sc production flexibility

Answer 11

avg time required to provide an unplanned 20% increase iin production

Question 12

sc delivery performance

Answer 12

avg % of orders filled by requested delivery date

Question 13

sc perfect order fulfillment performance

Answer 13

avg % of orders that arrive on time, complete & undamaged

Question 14

sc e-business performance

Answer 14

avg % of electronic orders received

Question 15

balanced scorecard (BSC) 4 perspectives

Answer 15

financial
internal business process
customer
learning & growth

Question 16

SCOR 6 process categories

Answer 16

plan
source
make
deliver
return
enable

Question 17

scor performance categories

Answer 17

reliability
responsiveness
agility
cost
asset mngt

Question 18

reliabilty attributes

Answer 18

on time delivery performance
order fill rates
order accuracy rates

Question 19

responsiveness attrib.

Answer 19

order lead times or speed

Question 20

agility attrib.

Answer 20

response times

production flexibility

Question 21

cost attrib.

Answer 21

supply chain mngt + logistics costs
cogs
warrarnty and returns costs

Question 22

asset mngt attrib.

Answer 22

cash-to-cash cycle time
inventory days of supply
asset turns