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Lecture 6. Identifying Dimensions of SC Performance Evaluating Operating Initiatives pp. 176-178 & Discussion of your group project!. Agenda. 1. Identifying Dimensions of SC performance 2. Evaluating Operating Initiatives. (to p3). (to p7).

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Lecture 6
Lecture 6

  • Identifying Dimensions of SC Performance

  • Evaluating Operating Initiatives

    pp. 176-178

    &

    Discussion of your group project!


Agenda
Agenda

  • 1. Identifying Dimensions of SC

    performance

  • 2. Evaluating Operating Initiatives

(to p3)

(to p7)


1 strategic dimensions identifying dimensions of sc performance
1. Strategic Dimensions: Identifying Dimensions of SC Performance

Strategic dimensions are a firm’s strategic focuses in the long run. The ultimate aim is to achieve supply chain excellence.

Planning, execution, business results, and social impact are adopted in the proposed supply chain overall performance model (see next slide).

(to p4)


Dimensions of SC Performance Performance

Social Impact

Planning

Execution

SC Overall Performance

Business Results

(to p5)

Further note


Execution
Execution Performance

The literature review further identifies personal contact quality, product availability, information quality, ordering processing quality, and order discrepancy handling as supply chain management strategic dimensions in the area of execution (see next slide).

See Appendix A for more information on Performance Measures in a supply chain environment

(to p6)

(to p11)

(to p2)


Dimensions of SC Performance - Execution Performance

Customer-related Measures

Job-related Measures

Social Impact

Personnel Contact Quality

Planning

Product Availability

Process Q Measures

Information Quality

Execution

SC Overall Performance

Ordering Processing Quality

Product Q Measures

Order Discrepancy Handling

Business Results

(to p5)


2 strategic deployment evaluating operating initiatives
2. Strategic Deployment: Evaluating Operating Initiatives Performance

Intelligent enterprise will proactively lay out a business strategy based on strategic focuses (or customer needs), and firm’s ability and operating initiatives.

How do we evaluating their level of significance?

(to p8)


Strategic deployment evaluating operating initiatives
Strategic Deployment: Evaluating Operating Initiatives Performance

A deployment strategy can be set up with the Quality Function Deployment (QFD) technique to ensure that strategic dimensions (or “What to do”) are linked effectively with the potential operating initiatives (or “How to do it”) (see next slide).

See Appendix B for more information on QFD

(to p9)

(to p15)


QFD Performance

Relationships:

Strong = 9

Medium = 3

Weak = 1

‘HOW’

Design

Requirements

Importance to customer

Redesigning Fulfillment Process

Making Use of OR Models

EstablishingStrategic Alliance

Adopting TQM Programs

‘WHAT’

Customer

Requirements

Adopting the ERP System

Sharing knowledge

Personal Contact Quality

4

Product Availability

5

Information Quality

4

Order Processing Quality

5

Order Discrepancy Handling

3

Total

127

105

159

97

31

189

Rate of Importance: 5=most Important; 1=least Important

(to p10)

How to read them?


Strategic deployment evaluating operating initiatives1
Strategic Deployment: Evaluating Operating Initiatives Performance

Cross –functional teams are normally used for this exercise.

Based on the QFD exercise, it is observed that the single most important initiative or program in achieving supply chain excellence is the adoption of the ERP system.

(to p2)


Appendix a sc performance measures
Appendix A: SC Performance Measures Performance

  • Planning (A.1)

  • Execution (A.2)

  • Business Results (A.3)

(to p12)

(to p13)

(to p14)

(to p5)


A.1 Dimensions of SC Performance - Planning Performance

Social Impact

Return on Investment

Long Term

Policy Development

Planning

Effectiveness of the Game Plan

Medium Term

Policy Deployment

Outcomes against Industry Norm

Short Term

Degree of Endorsement by SC Members

SC Overall Performance

Strategic Level

Execution

Tactical level

SC Climate

Business Results

Degree of Resistance to Change

Operational Level

(to p11)


A.2 Dimensions of SC Performance - Execution Performance

Job-related Measures

Social Impact

Social Cost

Policy Development

Planning

Policy Deployment

Process Q Measures

Design for Six sigma

Design

SC Overall Performance

Execution

Product Q Measures

Sigma Level

Conformance

Business Results

Customer-related Measures

Customer Satisfaction

Productivity

Growth/Learning

(to p11)


A.3 Dimensions of SC Performance – Business Results Performance

Social Impact

Planning

Total Replenishment Time

Forecasting Accuracy

Supplier Performance

Replenishment

SC Overall Performance

Execution

Total Production Time

Inventory Level

Capability Index

Production

Business Results

Total Fulfillment Time

Customer Responsiveness

Reliability of Delivery

Fulfillment

(to p11)


Appendix B: PerformanceQFD

Quality Function Deployment (QFD) is a system for translating consumer requirements into appropriate company requirements at each stage from research and development to engineering and manufacturing to marketing/sales and distribution.

(to p16)

Madu, C. N., House of Quality in a Minute, Chi Publishers, 2000, Fairfield, CT.


Steps in QFD Development Performance

  • Step 1: Identify customer requirements

  • Step 2: Identify design requirements

  • Step 3: Position these requirements in a matrix with importance weights as well as target values

  • Step 4: Develop a correlation matrix for tradeoffs

  • Introduce competitive and technical evaluations.

(to p8)


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