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Four Performance Dimensions

Four Performance Dimensions

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Published by ClassOf1.com
"Operations and supply chains can have an enormous impact on business performance. Experience suggests that four generic performance dimensions are particularly relevant to operations and supply chain activities. These are;

• Quality. Quality is defined as the characteristics of a product or service that bear on its ability to satisfy stated or implied needs. The concept of quality is broad, with a number of sub dimensions, including performance quality (What are the basic operating characteristics of the product or service?), conformance quality (Was the product made or the service performed to specifications?), and reliability quality (Will a product work for a long time without failing or requiring maintenance? Does a service operation perform its tasks consistently over time?).
"
"Operations and supply chains can have an enormous impact on business performance. Experience suggests that four generic performance dimensions are particularly relevant to operations and supply chain activities. These are;

• Quality. Quality is defined as the characteristics of a product or service that bear on its ability to satisfy stated or implied needs. The concept of quality is broad, with a number of sub dimensions, including performance quality (What are the basic operating characteristics of the product or service?), conformance quality (Was the product made or the service performed to specifications?), and reliability quality (Will a product work for a long time without failing or requiring maintenance? Does a service operation perform its tasks consistently over time?).
"

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Categories:Types, School Work
Published by: ClassOf1.com on Apr 17, 2013
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OperationManagement 
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Sub: Operation Management Topic: Operations and Supply
*
Four Performance Dimensions
Operations and supply chains can have an enormous impact on business performance. Experiencesuggests that four generic performance dimensions are particularly relevant to operations and supplychain activities. These are;
Quality.
Quality is defined as the characteristics of a product or service that bear on its abilityto satisfy stated or implied needs. The concept of quality is broad, with a number of subdimensions, including
performance quality
(What are the basic operating characteristics of the product or service?),
conformance quality
(Was the product made or the serviceperformed to specifications?), and
reliability quality
(Will a product work for a long timewithout failing or requiring maintenance? Does a service operation perform its tasksconsistently over time?).
Time.
Time has two basic characteristics: speed and reliability.
Delivery speed
generally refersto how quickly the operations or supply chain function can fulfill a need, once it has beenidentified. Delivery reliability refers to the ability to deliver products or services whenpromised. Note that a firm can have long lead times, yet still maintain a high degree of delivery reliability. Typical measures of delivery reliability include the percentage of ordersthat are delivered by the promised time and the average tardiness of late orders. Deliveryreliability is especially important to companies that are linked together in a supply chain.Consider the relationship between a fish wholesaler and its major customer, a fish processingfacility. If the fish arrive too late, the processing facility may be forced to shut down. On theother hand, fish that arrive too early may go badly before they can be processed. Obviously,these two supply chain partners must coordinate their efforts so that the fish will arrive
 
 
Sub: Operation Management Topic: Operations and Supply
*
within a specific delivery window, which is defined as the acceptable time range in whichdeliveries can be made.
Flexibility
. Many operations and supply chains compete by responding to the unique needs of different customers. Both manufacturing and service firms can demonstrate flexibility. A full-service law firm, for instance, will handle any legal issue a client faces. (Some law firmsspecialize in only real estate transactions or divorce settlements.) A full- service hotel will go
to great lengths to fulfill a guest’s every need.
For example
, a staff member at the Ritz-Carlton in Dearborn, Michigan, once noticed a guest standing outside the gift shop, waitingfor it to open. The employee found out what the guest wanted, picked it up when the shopopened, and waited outside a conference hall to deliver it to the guest. Many firmsdistinguish among several types of flexibility, including mix flexibility (the ability to produce awide range of products or services), changeover flexibility (the ability to provide a newproduct with minimal delay), and volume flexibility (the ability to produce whatever volumethe customer needs).
Cost
. Cost is always a concern, even for companies that compete primarily on some other
dimension. However, “cost” covers such a wide range of activities that companies com
monlycategorize costs in order to focus their cost management efforts.

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