Modules 10 & 11

Executive Dashboards

A computer-generated visual representation of a company's performance that is often available to executives on nearly any of their digital devices, they provide managers with important data that likely includes KPIs

System of Metric

A group of metrics that collectively attempt to provide a multi-dimensional view of a resource or outcome.

Process Velocity

A measure of how long a unit sits in a process versus the amount of work time that is expended on the unit

Adaptable

A measure of the conditions under which the tasks were completed. Examples might include: Road games, rainy days, against top ranked opponents, small class size, online course, winter months, against tall players, etc.

Cash-to-Cash Cycle

A measure of the number days between the time a company pays their supplier for inventory and the time that same company is paid for the same inventory by their customer.

Efficient

A measure of the resources used in the process. Examples might include: minutes played, shots taken, amount of aluminum used, total time to make all deliveries, cost of gas used to make deliveries, hours studied, hours of training, etc.

SMART Metrics

A metric that is Specific, Measureable, Attainable, Relevant, and Timely, thus the acronym S.M.A.R.T. This acronym is a helpful device that can guide managers in the development of useful managerial metrics.

Shared Metrics

A metric that is impacted by two related parties

Balanced Scorecard

A performance management tool that focuses on strategic activity and strategic outcomes.

Capacity Utilization

A ratio of the amount of product produced by a manufacturing process versus the maximum capacity of that facility

Performance Metric (PM)

A single performance measurement used to evaluate, motivate, and improve performance. Explained: How do you choose what to wear each

Managerial Paralysis

A situation where managers are inundated with data, this overflow of data actually slows decision-making and may even result in managers stalling or avoiding decision-making

Continuous Improvement

Companies need to preach continuous improvement to all members of the supply chain. More than that though, managers must reward continuous improvement efforts and achievements.

Crosby Quality is Free

Crosby is famous for his book that proclaimed, "Quality is Free". Before Crosby, most saw quality as a burden on corporate costs. Crosby argued that a lack of quality may have lower costs, but it would eliminate any value. As a result, the more that was invested in quality, the greater the value of the product or service.

Deming's Fourteen Points

Deming was a champion of continuous improvement. In an effort to help organizations foster a culture of continuous improvement he developed a list of quality recommendations that are often just referred to as Deming's Fourteen Points.

Prevention Costs

Fix present problems, prevent future problems - These are costs associated with efforts to eliminate any identified quality related problems or costs related to reducing the potential for quality problems in the future.

Juran Quality Trilogy

His primary quality teachings emphasized three things: quality planning, quality improvement, and quality control.

Key Performance Indicators (KPIs)

Individual performance metrics identified by the company as being imperative to achieving the organization's most important goals

Internal Failure Costs

Problems found and fixed within the supply chain - Quality costs that were identified within the supply chain, before they reached the consumer.

External Failure Costs

Problems that reach the consumer - These costs represent the worst-case scenario and have the highest potential for losses. These are the costs associated with "repairing" damage caused from delivering substandard items or services.

Quality:

The ability of a product or service to meet a consumer's expectations. Quality expectations may be related to, but not limited to, design, durability, performance, materials used, aesthetics, delivery, consistency, and associated service.

Total SCM Costs

The cost of every process, material, fee, defect, etc. that runs through the supply chain. Sometimes also explained as the cost to plan, source, and deliver products and services. (Note the relationship between this and three of the five SCOR Model processes.)

Perfect Order Fulfillment

The percentage of orders that are full, arrive on time, and are damage free

Effective

Were the desired goals met? Examples might include: goals scored, products manufactured, deliveries completed, courses passed, races won, etc.

Appraisal Costs

Where are the problems? - (Also called assurance costs) These are costs associated with monitoring quality in stable systems or the costs of researching when systems are producing sub-standard quality.

Deming prize

a Japanese quality award given to companies or individuals that have contributed to the field of quality

Reliability

a measure of the percentage of time a system or product operates successfully. It assumes that in order for a system or product to operate successfully all parts of the system (or parts in the component) must themselves be reliable.

Six Sigma

a program that strives for the complete elimination of defects. There are different levels of certification that include green belt, black belt, master black belt and six sigma champion. DMIAC- Define, measure Analyze, Improve, Control

Involvement

a supply chain myst work to involve all those within the supply chain to design, produce, and deliver quality to the customer. This means management must work to keep employees engaged in the quest for quality. Managers must also develop relationships with supply chain partners to collaborate and share effort to maintain their customer focus.

The Malcolm Baldrige National Award (MBNQA)

awarded to companies based in the US that her team to demonstrate the very best in the area of performance excellence

Benchmarking

is the process whereby companies compare their practices and performance measurements to those of other companies

Total Quality Management

seeks to address the management of quality at all levels of an organization and/or supply chain.

Internal benchmarking

some organizations are so big that they can benchmark one department versus another in reality even a smaller organization can do this example of General electrics energy group benchmarking hiring practices from General electrics healthcare group

Customer focus

the customer defines quality so all attention should be focused on the customer and their evolving definition of quality

Competitive benchmarking

this type of benchmarking is used when companies want to measure their processes programs and outcomes versus those of their competitors example Honda benchmarking Toyota

Functional benchmarking

when a company benchmarks an organization that is successful in an area where in their processes reflect similar inputs outputs are values

SCOR Model

(Supply Chain Operations Reference Model) A measurement tool that enables supply chain partners to track performance, communicate progress, and develop opportunities for improvement.5 primary supply chain processes are: plan, source, make, deliver, return