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 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
(What are the basic operating characteristics of the product or service?),
(Was the product made or the serviceperformed to specifications?), and
(Will a product work for a long timewithout failing or requiring maintenance? Does a service operation perform its tasksconsistently over time?).
Time has two basic characteristics: speed and reliability.
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