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an’ t measure, you can’ t manage, you can’ t motivate” ? Establishing the proper measures within an anisation enhances continuous ? No monly used “ model” . ? Business issues that warrant performance measurement: – Differ between industries. – Differ within industry. – Change overtime. There is no one “ right” answer Focus Accountability Communication Linking strategy to action Assigning accountability to take action when needed Measuring progress towards goals through interactive munication and education We used a generic supply chain framework as a basis for our analysis . . . Supply Chain Framework Suppliers Purchasing Information Flow Forecasting Production Planning Customer Service Inventory Management Inbound Logistics Manufacturing Maintenance Marketing Sales Outbound Logistics Integrated Supply Chain Management Customers This framework aligns with the CoE POV and is also similar to framework for the supply chain diagnostics inventory database. . . . and concluded there are three strategic objectives we should focus on when analysing the supply chain Key metrics must give information on how a pany is performing against old strategic objectives. Strategic objectives: Quality Time Cost Products/services according to customer expectations On agreed time At reasonable cost Purchasing Information Flow Forecasting Production Planning Inventory Management Inbound Logistics Manufacturing Maintenance Marketing Sales Outbound Logistics Integrated Supply Chain Management Customer Service Supply Chain Framework NB: Boundaries ? NPDI ? Support functions Tailor to pany specific (BSC) objectives We began with a brainstorming session on the key drivers for quality, time and cost The plete picture can be found in the appendix. ? We looked at the supply chain from the customer’ s perspective. ? We brainstormed on “ what could go wrong along the supply chain” : – What are drivers of performance from a quality, time and cost point of view. Price Service Product quality Product quantity Product delivery Late arrival Late delivery Inventory cost Product cost Production cost Delivery cost Customer service cost Quality Time Cost Making their client specific warrants attention ? Respect all sources of data: ? Understand their relationships— the “ causal tree” : ? Recognised CrossIndustry。 Shipping Error ? of plaints as % of total orders ? of customer contacts per order ? of enquiries (including plaints) that were not answered to the customers satisfaction ? of information requests as % of customer orders ? % of calls abandoned, answered by recording, delayed ? % of customer contact through customer service ? % of customer followup handled by Customer Service Representative。 !0 cos $23bn 50–87 20% 1–10% 6–182 9–267 5–75% %–% 165 % (18% xxx) 82 % 82% 50% 22 26 1% 97% 272 % 27% 26% 42 hrs 30 21 % 11% 79% 33% 1% 19% 26 10/100 162。 H. Cook shop research. Industry Sector Benchmarking Range/Best Practice (Validate source) Average Manufacturing (Validate source) Chemicals Best Practice (Validate source) Global Chemical Purchasinga %–% % Measure QUALITY TIME COST Automotive (Global)a Pharma. (Global)a Eng./Constr. (Global)a ? % of correct orders placed ? of alternative sources of supply ? of suppliers involved in product development/innovation ? of active suppliers per purchasing professional ? of vendors products ordered ? % of all active suppliers that account for 90% of total purchase value ? % of purchases handled by purchasing department ? Purchasing head count as % of total head count ? % purchases handled by purchasing function ? % spend on longterm basis (2yrs) ? % firms using consortium buying ? Training per purchasing professional ? % of accounts payable handled before due date ? % of accounts payable handed in 1–30 days ? % of accounts payable handled in 31–60 days ? % of accounts payable handled in 61–90 days ? % of accounts payable handled in over 90 days ? % of suppliers connected via EDI ? Average actual time to developed/negotiate a contract ? % goods delivered on time by supplier ? Time from order placement to receipt of goods ? Cost as % of sales ? Cost as % of total costs ? Cost of orders purchased (range ? Cost of vendor transactions (range) ? Cost of expedite repair materials ? Purchasing spend per supplier ? Purchasing spend per purchasing ? Purchase Dept. expense (162。 and InCompany simil