Tuesday, May 31, 2011

Supply chain performance metrics framework

The following list is not intended as a prescription for metrics, it is simply a framework that can be used when considering what to include in the scorecard.  Great care needs to be given to the selection of metrics in terms of their linkage to the overall business strategy.   

Plan
  •  Strategic
  1. Level of customer perceived value of product.
  2. Variances against budget.
  3. Order lead time.
  4. Information processing cost. 
  5. Net profit Vs productivity ratio. 
  6. Total cycle time.
  7. Total cash flow time. 
  8. Product development cycle time.
  • Tactical
  1. Customer query time. 
  2. Product development cycle time
  3. Accuracy of forecasting techniques. 
  4. Planning process cycle time. 
  5. Order entry methods. 
  6. Human resource productivity.
  •  Operational
  1. Order entry methods. 
  2. Human resource productivity.
Source
  • Tactical 
  1. Supplier delivery performance.
  2. Supplier leadtime against industry norm. 
  3. Supplier pricing against market.
  4. Efficiency of purchase order cycle time. 
  5. Efficiency of cash flow method. 
  6. Supplier booking in procedures.
  • Operational
  1. Efficiency of purchase order cycle time. 
  2. Supplier pricing against market.

Make/Assemble
  • Strategic
  1. Range of products and services.
  • Tactical
  1. Percentage of defects. 
  2. Cost per operation hour. 
  3. Capacity utilization.
  4. Utilization of economic order quantity.
  • Operational
  1. Percentage of Defects. 
  2. Cost per operation hour. 
  3. Human resource productivity index.
Deliver
  • Strategic 
  1. Flexibility of service system to meet
    customer needs. 
  2. Effectiveness of enterprise distribution planning schedule.
  • Tactical
  1. Flexibility of service system to meet customer needs.
  2. Effectiveness of enterprise distribution planning schedule.
  3. Effectiveness of delivery invoice methods.
  4. Percentage of finished goods in transit. 
  5. Delivery reliability performance.
  • Operational
  1. Quality of delivered goods. 
  2. On time delivery of goods.
  3. Effectiveness of delivery invoice methods. 
  4. Number of faultless delivery notes invoiced.
  5. Percentage of urgent deliveries.
  6. Information richness in carrying out delivery. 
  7. Delivery reliability performance

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