SCM 3301 Lecture Notes - Lecture 16: Balanced Scorecard

• School: University of Houston
• Department: Supply Chain Management
• Course: SCM 3301
• Professor: Wayhan Victor

Document Summary

Everyone has a different perspective on the source and magnitude of problems o o o o. Designing production and distribution capabilities to meet these needs. Determine how a supply chain can best satisfy those needs. Audit supply chain partners capabilities to determine if what they do particularly well is consistent with the needs of the end customer. World-class performance measures o o o o o o o. Assure (check) that the measures encourage pursuit of strategic objectives. World-class (4-5% of sales), average (5-6% of sales) World-class (4-5% of sales), average (5-6% of sales) o. The average number of days from payment for materials to getting paid for your product. o. Average percentage of orders that arrive on time, complete and damage free. Difficult to communicate the relation between measurements and actual performance. Scorecards and dashboards are designed to improve measurement. Key to balance scorecard link performance measures to strategic objectives is building a balance scorecard.