SCM 300 Final Exam with 100%
Correct Answers
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.
SCOR Model (Supply Chain Operations Reference Model) - correct Answer-
Measurement tool that allows SC partners to track performance, communicate
progress, and develop opportunities for improvement. (5 primary SC processes: Plan,
Source, Make, Deliver, Return) This is a tool used to integrate the SC.
Total SCM Costs - correct Answer-cost of every process, material, fee, defect, etc. that
runs through the SC.
Cash-to-cash cycle - correct Answer-measure of the number of days b/t the time a
company pays their supplier for inventory and the time that same company is paid for
the same inventory by their customer.
-Formula: (Days of Inventory on hand) + (Days of A/R owed to your company by your
customer) - (Days of A/P your company owes to suppliers).
Capacity utilization - correct Answer-ratio of the amount of product produced by a
manufacturing process vs. the max. capacity of that
: (Actual factory output) / (factory design capacity)
Correct Answers
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.
SCOR Model (Supply Chain Operations Reference Model) - correct Answer-
Measurement tool that allows SC partners to track performance, communicate
progress, and develop opportunities for improvement. (5 primary SC processes: Plan,
Source, Make, Deliver, Return) This is a tool used to integrate the SC.
Total SCM Costs - correct Answer-cost of every process, material, fee, defect, etc. that
runs through the SC.
Cash-to-cash cycle - correct Answer-measure of the number of days b/t the time a
company pays their supplier for inventory and the time that same company is paid for
the same inventory by their customer.
-Formula: (Days of Inventory on hand) + (Days of A/R owed to your company by your
customer) - (Days of A/P your company owes to suppliers).
Capacity utilization - correct Answer-ratio of the amount of product produced by a
manufacturing process vs. the max. capacity of that
: (Actual factory output) / (factory design capacity)
