Chapter 14: Performance Measurement along Supply Chains

Using the following information, calculate the total productivity: Output = 25,000 units; 400 labor hours @ $15.00 per hour Material cost = $625,000; Utilities cost = $1,400

0.0395 units/$

Approximately how many performance measures does the BSC recommend?

2 dozen

Given the following information, calculate the labor productivity growth rate from period 1 to period 2: Units produced in period 1 = 1,800 units, using 200 labor hours Units produced in period 2 = 1,840 units, using 220 labor hours

-7.07%

Most performance measures used by firms today:

Are traditional cost-based and financial statistics.

Which of the following was designed in 1992 by Kaplan and Norton as a way to align a firm's performance measures with its strategic plans and goals?

Balanced scorecard approach

Establishing standards for performance comparison purposes:

Can be troublesome, particularly when the standards are unrealistic

According to the SCOR model, which of the following is NOT one of the supply chain operations process categories?

Sell

Which of the following is a problem with a company establishing labor and machine utilization standards for performance?

Encourages the firm to reduce labor levels until everyone is overworked There is a tendency to continue producing and adding to inventory just to keep machines and people busy Less time is spent doing preventive maintenance, training, and projects that can lead to greater performance

Good performance measurement systems:

Help to eliminate non-value-creating activities

Which of the following is NOT a step in creating an effective performance measurement system?

Identify costs, revenues, labor hours, and capacities used each period

Which of the following would be considered a good starting point for building a green supply chain strategy among supply chain partners?

Obtaining ISO 14000 certifications

Which of the following is NOT one of the SCOR model's five categories of performance attributes?

Profitability

Which of the following is NOT one of the four perspectives of the BSC framework?

Reliability

Which of the following is NOT one of the specific measures listed in the text that must be adopted by supply chain trading partners such that performance can be further aligned with supply chain objectives?

Supply Chain Marketing Performance

Which of the following supply chain performance metrics measures the average percentage of orders among supply chain members that arrive on time, complete, and damage-free?

Supply chain perfect order fulfillment performance

Which of the following is NOT a characteristic of supply chain performance measurement systems?

Their goal is to achieve cost minimization for each supply chain member

Which of the following is most associated with world class performance measurement systems?

They link firm strategies and operating decisions to customer requirements

The world's largest green supply chain management initiative is being implemented by:

Walmart

Companies typically like to design scorecards that fit their business and industry. As a result, there are software applications that can help companies design scorecards that link via the web to a firm's enterprise software system. These web-based balanced scorecard applications are often referred to as:

performance dashboards

When utilizing performance standards, the difference between the standard and the actual performance is called a:

performance variance