SCM 300: Final Exam
Performance metric (PM) - CORRECT ANSWER-a single performance
measurement used to evaluate, motivate, and improve performance.
System of metrics - CORRECT ANSWER-A group of metrics that collectively
attempt to provide a multi-dimensional view of a resource or outcome.
Reasons organizations use PMs - CORRECT ANSWER-(a) Helps to establish
and support standards,
(b) Motivate good behavior,
(c) Identify trends,
(d) Managing large numbers of resources,
(e) Performance data can facilitate decision making and planning
Importance of Goals and Stakeholders - CORRECT ANSWER-key to developing
metrics that meet stakeholder goals is first recognizing all the stakeholders and
then understanding their individual goals.
Consequences of poor metrics - CORRECT ANSWER-ill-conceived metrics can
motivate bad behavior: (ex) SC goals are not met, poor output, waste,
undesirable employee behaviors, managers may make poor decisions, employee
victimization, undeserved winners, lack of contentment.
Requirements of a good metric - CORRECT ANSWER-measureable, easily
understood, attainable, strategically oriented, easy to measure, provides value,
provides guidance, cheater proof
SMART metrics - CORRECT ANSWER-a metric that is Specific, Measurable,
Attainable, Relevant, and Timely. A helpful device that can guide managers in the
development of useful managerial metrics.
3 Key measurement system attributes - CORRECT ANSWER-(1) Effective: were
the desired goals met?
(2) Efficient: A measure of the resources used in the process.
(3) Adaptable: measure of the conditions under which the tasks were completed.
, Keys to designing a system of metrics - CORRECT ANSWER-Stakeholders and
goals, Good metrics, Simplicity, Completeness, Redundancy (avoid), Continuous
improvement, Leadership
KPIs (Key Performance Indicators) - CORRECT ANSWER-Individual
performance metrics identified by the company as being imperative to achieving
the organization's most important goals.
Executive dashboards - CORRECT ANSWER-computer-generated visual
representation of a company's performance that is often available to executives
on any of their digital devices. Often include KPIs, real-time and historical data,
and color-coded performances centers that helps them quickly identify positive,
negative, and neutral output.
Managerial paralysis - CORRECT ANSWER-situation where managers are
inundated with data. This slows decision-making and may result in managers
stalling or avoiding decision-making.
Common measurement pitfalls - CORRECT ANSWER-Managers fail to use the
data, Blind belief in institutional metrics, incomplete measurements, Utilizing too
many metrics, Driving toward perfection may waste resources, What do those
numbers really mean?
Shared metrics - CORRECT ANSWER-A metric that impacted by two related
parties.
Balanced scorecard (BSC) - CORRECT ANSWER-performance management
tool that focuses on strategic activity and outcomes. (tracks 4 different traditional
output areas.)
(1) Financial results
(2) Customer-related results
(3) Internal business process results,
(4) Learning and growth results.
-All of these are used to locate problems before they impact financial results.
Performance metric (PM) - CORRECT ANSWER-a single performance
measurement used to evaluate, motivate, and improve performance.
System of metrics - CORRECT ANSWER-A group of metrics that collectively
attempt to provide a multi-dimensional view of a resource or outcome.
Reasons organizations use PMs - CORRECT ANSWER-(a) Helps to establish
and support standards,
(b) Motivate good behavior,
(c) Identify trends,
(d) Managing large numbers of resources,
(e) Performance data can facilitate decision making and planning
Importance of Goals and Stakeholders - CORRECT ANSWER-key to developing
metrics that meet stakeholder goals is first recognizing all the stakeholders and
then understanding their individual goals.
Consequences of poor metrics - CORRECT ANSWER-ill-conceived metrics can
motivate bad behavior: (ex) SC goals are not met, poor output, waste,
undesirable employee behaviors, managers may make poor decisions, employee
victimization, undeserved winners, lack of contentment.
Requirements of a good metric - CORRECT ANSWER-measureable, easily
understood, attainable, strategically oriented, easy to measure, provides value,
provides guidance, cheater proof
SMART metrics - CORRECT ANSWER-a metric that is Specific, Measurable,
Attainable, Relevant, and Timely. A helpful device that can guide managers in the
development of useful managerial metrics.
3 Key measurement system attributes - CORRECT ANSWER-(1) Effective: were
the desired goals met?
(2) Efficient: A measure of the resources used in the process.
(3) Adaptable: measure of the conditions under which the tasks were completed.
, Keys to designing a system of metrics - CORRECT ANSWER-Stakeholders and
goals, Good metrics, Simplicity, Completeness, Redundancy (avoid), Continuous
improvement, Leadership
KPIs (Key Performance Indicators) - CORRECT ANSWER-Individual
performance metrics identified by the company as being imperative to achieving
the organization's most important goals.
Executive dashboards - CORRECT ANSWER-computer-generated visual
representation of a company's performance that is often available to executives
on any of their digital devices. Often include KPIs, real-time and historical data,
and color-coded performances centers that helps them quickly identify positive,
negative, and neutral output.
Managerial paralysis - CORRECT ANSWER-situation where managers are
inundated with data. This slows decision-making and may result in managers
stalling or avoiding decision-making.
Common measurement pitfalls - CORRECT ANSWER-Managers fail to use the
data, Blind belief in institutional metrics, incomplete measurements, Utilizing too
many metrics, Driving toward perfection may waste resources, What do those
numbers really mean?
Shared metrics - CORRECT ANSWER-A metric that impacted by two related
parties.
Balanced scorecard (BSC) - CORRECT ANSWER-performance management
tool that focuses on strategic activity and outcomes. (tracks 4 different traditional
output areas.)
(1) Financial results
(2) Customer-related results
(3) Internal business process results,
(4) Learning and growth results.
-All of these are used to locate problems before they impact financial results.
