Metrics for SCM

Paola Mercado
Mind Map by Paola Mercado, updated more than 1 year ago
Paola Mercado
Created by Paola Mercado over 6 years ago
3
0

Description

aaa

Resource summary

Metrics for SCM
  1. Cost Measures

    Annotations:

    • Cost: "The money spent to acquire a raw material, a product, or a service." (Elrod,Murray & Bande, 2013)
    1. Total Costs

      Annotations:

      • Total Costs: "Refers to all the costs incurred to manufacture a product. This includes costs of raw materials, labor, transportation, distribution, marketing, administrative, overhead, as well as fixed costs such as acquisition of property, machinery, and other longterm investments." (Elrod,Murray & Bande, 2013)
      1. Identifies overall costs
        1. Difficult to obtain
        2. Distribution Costs

          Annotations:

          • Distribution Costs: "Costs incurred when products are transported from one place to another." (Elrod,Murray & Bande, 2013)
          1. Isolate a important cost
            1. Difficult to classify
            2. Information Processing Costs

              Annotations:

              • Information Procesing Costs: "Costs incurred when orders are taken, when invoices are prepared, and when discounts are given"  (Elrod,Murray & Bande, 2013)
              1. Isolate a important cost
                1. Not disclosed to public
                2. Inventory Costs

                  Annotations:

                  • Inventory Costs: "Costs associated with storing all elements of a product, from raw materials to finished goods."  (Elrod,Murray & Bande, 2013)
                  1. Bring low inventory levels
                    1. Cannot be extinguish 100%
                    2. Manufacturing Costs

                      Annotations:

                      • Manufacturing Costs: "Costs incurred in production of a product" (Elrod,Murray & Bande, 2013)
                      1. Measures a key cost
                        1. Difficult to classify
                        2. Inventory Obsolescence

                          Annotations:

                          • Inventory Obsolescence: "Costs associated with inventories that are obsolete, or those products whose value has depreciated over time" (Elrod,Murray & Bande, 2013)
                          1. Identifies costs to extinguish
                            1. Cannot be extinguish 100%
                            2. Finished Goods Inventory

                              Annotations:

                              • FGI Cost: "Cost of finished products that are present in inventory, warehouse, or in-transit." (Elrod,Murray & Bande, 2013)
                              1. Critical performance measure
                                1. Higher overhead cost = Higher total cost
                                2. Return On Investment

                                  Annotations:

                                  • ROI: "Ratio of net profit in relation to the investment on total assets."(Elrod,Murray & Bande, 2013)
                                  1. Higher ROI=Higher investment
                                    1. Difficult to measure
                                    2. Warehouse Costs

                                      Annotations:

                                      • Warehouse Costs: "Costs associated with the maintenance of storage spaces; key contributors to this cost are rent, utilities, maintenance, and labor costs." (Elrod,Murray & Bande, 2013)
                                      1. Identifies storage costs
                                        1. Varies widely with industry
                                        2. Incentive Costs

                                          Annotations:

                                          • Incentive Cost: Incentives give to employees, managers, executives and new products. 
                                          1. Identifies sale incentives costs
                                            1. Difficult to identify
                                            2. Intangible Costs

                                              Annotations:

                                              • Intangible Costs: "Non-quantifiable costs and costs not associated with one particular product" (Elrod,Murray & Bande, 2013)
                                              1. Identifies critical cost factors
                                                1. Difficult to measure
                                                2. Financial Cost

                                                  Annotations:

                                                  • "Financial performance measures are used to track and manage costs." (Elrod,Murray & Bande, 2013)
                                                  1. Direclty measure
                                                    1. Difficult to obtain
                                                  2. Quality Measure

                                                    Annotations:

                                                    • Quality: "The perception that the product or service meets the consumer’s demand." (Elrod,Murray & Bande, 2013)
                                                    1. Perceived Value of the Product

                                                      Annotations:

                                                      • "It is crucial to know their satisfaction level using the product. This measure helps the company understand how the product satisfies the market." (Elrod,Murray & Bande, 2013)
                                                      1. Identifies desires and demand from customers
                                                        1. Difficult to obtain
                                                        2. Buyer-Supplier Relationship

                                                          Annotations:

                                                          • "Supply chain management can be improved with increased coordination among different departments, as well as healthy relationships between buyers and suppliers."  (Elrod,Murray & Bande, 2013)
                                                          1. Improved relationship supplier-company
                                                            1. Not always a healthy relation
                                                            2. Shipment Errors

                                                              Annotations:

                                                              • "Determining the location and severity of shipping errors" (Elrod,Murray & Bande, 2013)
                                                              1. Identifies and assist errors
                                                                1. Difficult to isolate the root cause
                                                                2. Accuracy

                                                                  Annotations:

                                                                  • "Measuring accuracy considers the ratio of correctly produced products to incorrectly produced products." (Elrod,Murray & Bande, 2013)
                                                                  1. Identify accuracy with minimal waste
                                                                    1. Difficult to isolate
                                                                    2. Number of Faulty Notes Invoiced

                                                                      Annotations:

                                                                      • "This measure helps determine the frequency of incorrect invoices. Errors include improper condition of the shipment, late shipments, shipment of incorrect items, or damage to the products" (Elrod,Murray & Bande, 2013)
                                                                      1. Identifies trends and rectified errors
                                                                        1. Difficult to identify faulty invoices
                                                                      2. Time Measures

                                                                        Annotations:

                                                                        • Time: duration of a specific events
                                                                        1. Order Lead Time

                                                                          Annotations:

                                                                          • Order Lead Time: " This is the period of time beginning with the customer placing an order until the time the order is delivered" (Elrod,Murray & Bande, 2013)
                                                                          1. Customer can know the waiting time
                                                                            1. Measure can be wrong
                                                                            2. Customer Order Path

                                                                              Annotations:

                                                                              • Customer Order Path: "The time spent traversing different processes before completing the order." (Elrod,Murray & Bande, 2013)
                                                                              1. Helps identify the idle time
                                                                                1. Difficult to carry out
                                                                                2. Effectiveness of Scheduling the Tecniques

                                                                                  Annotations:

                                                                                  • " Scheduling decides when an activity should start and when it should end, depending on the availability of the resources."  (Elrod,Murray & Bande, 2013)
                                                                                  1. Helps using resources efficiently
                                                                                    1. Not equitative with products or tasks
                                                                                    2. Product Development Cycle Time

                                                                                      Annotations:

                                                                                      • " Product development cycle time refers to the time consumed by raw materials to go through various assemblies to design a new product."  (Elrod,Murray & Bande, 2013)
                                                                                      1. Introduce products quickly
                                                                                        1. Varies greatly
                                                                                        2. Product Lateness Time

                                                                                          Annotations:

                                                                                          • Product Lateness Time: "The difference between the delivery date and the due date." (Elrod,Murray & Bande, 2013)
                                                                                          1. Identifies delays and task consuming time
                                                                                            1. Solution may not alter
                                                                                            2. Average Lateness Time

                                                                                              Annotations:

                                                                                              • " This measure captures late deliveries. The average lateness time is calculated by summing all the late times, followed by dividing by the total number of late orders" (Elrod,Murray & Bande, 2013)
                                                                                              1. Results used for scheduling decision
                                                                                                1. Not identify errors
                                                                                                2. Average Earliness Time

                                                                                                  Annotations:

                                                                                                  • " The average earliness time is determined by averaging the times of all early deliveries" (Elrod,Murray & Bande, 2013)
                                                                                                  1. Factor in customer satisfaction
                                                                                                    1. Not identify specific problems
                                                                                                    2. Manufacturing Lead Time

                                                                                                      Annotations:

                                                                                                      • " The time from point of order release until order shipped is manufacturing lead-time" (Elrod,Murray & Bande, 2013)
                                                                                                      1. Identifies overall manufacturing time
                                                                                                        1. Could mask errors and lag times
                                                                                                      2. Flexibility Measures

                                                                                                        Annotations:

                                                                                                        • Flexibility: "ability to adapt to change by the company" (Elrod,Murray & Bande, 2013)
                                                                                                        1. Range of Products and Services

                                                                                                          Annotations:

                                                                                                          • " Useful to evaluate the company’s ability to introduce new products in the market"   (Elrod,Murray & Bande, 2013)
                                                                                                          1. Less products = More rapid reaction
                                                                                                            1. More products = Less flexible
                                                                                                            2. Capacity Utilization

                                                                                                              Annotations:

                                                                                                              • " It is calculated as the ratio of total actual capacity to the designed capacity" (Elrod,Murray & Bande, 2013)
                                                                                                              1. Determinate equipment utilization
                                                                                                                1. High utilization in wrong products
                                                                                                                2. Volume Flexibility

                                                                                                                  Annotations:

                                                                                                                  • " This measure determines the ability to change the level of production in response to market demand."(Elrod,Murray & Bande, 2013)
                                                                                                                  1. Identifies response rate
                                                                                                                    1. Difficult to calculate
                                                                                                                    2. Plant Volume Flexibility

                                                                                                                      Annotations:

                                                                                                                      • "This measure captures the ability of a company to change the volume produced, depending on demand" (Elrod,Murray & Bande, 2013)
                                                                                                                      1. Output volume change measurement
                                                                                                                        1. Equipment and process design unflexible
                                                                                                                        2. Delivery Flexibility

                                                                                                                          Annotations:

                                                                                                                          • "This measure assesses the company’s ability to schedule delivery dates" (Elrod,Murray & Bande, 2013)
                                                                                                                          1. Identifies rate on guarantees
                                                                                                                            1. Difficult to measure
                                                                                                                            2. Labor Flexibility

                                                                                                                              Annotations:

                                                                                                                              • " This measure defines the number of tasks an employee can perform" (Elrod,Murray & Bande, 2013)
                                                                                                                              1. Take tasks in case of emergency
                                                                                                                                1. Working saturation
                                                                                                                                2. Modification Flexibility

                                                                                                                                  Annotations:

                                                                                                                                  • "Modification flexibility refers to company’s ability to modify a product or product line without incurring high transition penalties." (Elrod,Murray & Bande, 2013)
                                                                                                                                  1. Customner have products quickly
                                                                                                                                    1. It could be expensive
                                                                                                                                    2. Expansion Flexibility

                                                                                                                                      Annotations:

                                                                                                                                      • " Ability of a firm to expand rapidly" (Elrod,Murray & Bande, 2013)
                                                                                                                                      1. Easily if demand increase
                                                                                                                                        1. It could be overhead costs
                                                                                                                                      Show full summary Hide full summary

                                                                                                                                      Similar

                                                                                                                                      Plan de Acción Social Media
                                                                                                                                      Cesar Ramirez7144
                                                                                                                                      DIBUJO DE CONJUNTO
                                                                                                                                      Javier Mauricio Mejia
                                                                                                                                      Obligaciones civiles y comerciales en Argentina
                                                                                                                                      Manuel Lujan
                                                                                                                                      a. FACTORES ENDOGENOS Y EXOGENOS QUE AFECTAN LA PRODUCTIVIDAD DE LAS EMPRESAS MANUFACTURERAS DE VENE
                                                                                                                                      fannymora47
                                                                                                                                      Neumática
                                                                                                                                      Miguel Mina
                                                                                                                                      EJEMPLOS DEL 1ER PROBLEMA DE LA GEOMETRÍA ANALÍTICA
                                                                                                                                      Mariana Yautentzi
                                                                                                                                      NUCLEÓTIDOS
                                                                                                                                      PABLO ASENSIO BA
                                                                                                                                      Desempeño docente Evaluación de la Educación
                                                                                                                                      german.calameo.s
                                                                                                                                      Proceso Terapéutico
                                                                                                                                      viridiana acevedo parra