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