Professional Documents
Culture Documents
MARMARA UNIVERSITY
Department of Industrial Engineering
HAZAL KARABIYIK
June 2009
T.R.
MARMARA UNIVERSITY
Department of Industrial Engineering
HAZAL KARABIYIK
June 2009
FACOLTÀ DI INGEGNERIA
Correlatore:
Dr. Ing. Paolo Taticchi
This thesis was written in Italy, in the Università degli Studi di Perugia, during I was
student by Erasmus Exchange Program. I have been blessed by having many good advisors
and supporters with whom we could chew over different ideas that have gone into this thesis.
I am deeply grateful to my advisor, Dr. Ing. Paolo Taticchi, without his tremendous
effort in supporting and guiding me I could not finish this thesis at this level.
Finally, I would like to thank to my family and my friends for their continual support
during my studies.
TABLE OF CONTENTS
ABSTRACT................................................................................................. VI
ABBREVIATIONS...................................................................................... VII
REFERENCES ............................................................................................ 28
ABSTRACT
This paper first gives the information about Performance Measurements and Supply
Chain Management. After introduction to these concepts, the objective of paper is defined as to
find a proper framework for measuring performance measurement in Supply Chain. Also, the
need for performance measurement in Supply Chain was explained.
231 articles were investigated by reading each abstract and then 47 of them were
selected for this project. After reading 47 articles, performance models that have been created
by different authors were explained and strengths and weaknesses table were created in order to
understand each framework. Also, common characteristics that authors mentioned in their
articles were grouped.
In thesis part, while creating framework, common characteristics and the strengths of
each frameworks were considered. In the first framework performance attributes and
management level aspects were used. Also to identify Key Performance Indicators for new
framework, frameworks that have been applied in the past were used and some of Key
Performance Indicators were created for this framework. But it is not enough to reach the aim
of the project. To add Supply Chain aspects Supply Chain Operations Reference Model was
added to the first framework, the new framework was created according to performance
attributes, management levels, internal and external aspect and whole Supply Chain parts.
By means of these frameworks, managers can show the whole Supply Chain. Also, to
show that every part of supply chain is another company as themselves, same performance
attributes in the first framework was put in the other parts. Then linking the all performance
attributes, Global supply performance attributes were obtained. To consider this, managers can
measure own company performance and also the whole Supply Chain performance.
VI
ABBREVIATIONS
SC : Supply Chain
SCM : Supply Chain Management
KPI : Key Performance Indicator
SCP : Supply Chain Performance
PCTM : KPI Cost Transformation Matrix
JIT : Just in Time
TQM : Total Quality Management
CSF : Critical Success Factors
PBC : Performance Based Costing
CRM : Customer Relationship Management
QoS : Quality of Services
QLF : Quality Loss Function
DEA : Data Envelopment Analysis
SCOR : Supply Chain Operations Reference-model
SCC : Supply-Chain Council
GS : Global Supply
VII
LIST OF FIGURES
PAGE NO
VIII
LIST OF TABLES
PAGE NO
IX
PART I
I.1. INTRODUCTION
The interest in managing supply chains is growing rapidly among companies around
the world. Major forces behind this development and increasing competitive pressure and
belief that working cooperatively in supply chains (SCs) can create a competitive advantage.
Coordinating activities in supply chain, however, is difficult. The difficulties are partly due to
the complexity induced by the large number of related and independent activities in the
supply chain.
Understanding the interdependencies and the complex casual relationships in a supply
chain is therefore crucial to the successful management of activities. In many organizations
the problems show us that the use of system thinking is insufficiently developed although it
has been with us for several decades.
Because of the lack of system thinking, many firms approached to another important
area: the design of performance measurement systems with supply chain. A performance
measurement system plays an important role in managing a business as it provides the
information necessary for decision making and actions.
1
flows in order to fulfill (ultimate) customer demands with the aim of improving
competitiveness of a supply chain as a whole.
I.2. OBJECTIVE
The objective of this thesis is to explore the role of performance measurement in SCM
and develop a framework and a right set of Key Performance Indicators (KPIs) for SC
performance measurement. The literature analysis shows that there are not sufficient
frameworks for performance measurement. In addition to that, to measure performance
measurement is not standard, how can we measure? What KPIs do we need? This thesis also
answers these types of questions.
2
PART II
GENERAL BACKGROUND
3
emerges. From a philosophical point of view this represents a significant shift away from the
unitary to the pluralist perspective. It recognizes that customer satisfaction can only come
from the supply chain functioning effectively in totality (both processes and process
interfaces). This closely follows the logic “Theory of Constraints” model as focused on intra-
organizational activities, and its subsequent extrapolation to a wider inter-organizational
perspective. However, success in meeting customers’ needs requires an increasing
international perspective from the supply network and this introduces a new vector of pan-
cultural into the performance measurement perspective. (Morgan, 2007)
4
other firms in the supply chain. They suggest metrics such as customer satisfaction/quality,
time, costs and assets, which can be followed both in terms of results attained and in terms of
diagnosis.
In general, traditional performance metrics are financial and they measure return on
investment, profitability, cash return etc. These data are absolute and objective. However,
these measures are criticized as showing a limited perspective of the firm, being retroactive
and not being able to provide strong forecasts about the future. (Parker, 2000).
For an efficient performance measurement system, Morgan, 2004 suggests that
strategy should drive production activities and determine the goals for the performance
measurement system. Performance measurement should lead performance improvement, that
if performance measurement is used as feed forward instead of feedback, it would help
management to take care of the matters which require strategic improvements.
Successful firms are those which have conformable competitive strategies and supply
chain strategies. When establishing supply chains, it is suggested to balance responsiveness
and efficiency in the best way to provide the competitive strategy. There are four factors
which affect supply chain performance in terms of responsiveness and efficiency; inventory,
transportation, facilities and information. In the meantime, these four factors determine the
conformability of the competitive strategy and supply chain strategy. (Muratoglu, 2008)
5
had remained largely unchanged since they were first developed in the 1920s by the DuPont
cousins and Donaldson Brown (Chandler, 1977).
These recurring themes – the desire to quantify and the unanticipated consequences of
quantification – appear to have resulted in frequent “re-discoveries” of Drucker’s 1954
suggestion that balanced measurement systems should be developed (Drucker, 1954).
Throughout the 1980s and early 1990s, numerous authors suggested measurement
frameworks that might be appropriate – the performance pyramid (Lynch and Cross, 1991),
the results-determinants framework (Fitzgerald et al., 1991), the performance measurement
matrix (Keegan et al., 1989) and, of course, the balanced scorecard (Kaplan and Norton,
1992). The result was that a dominant research question in the mid-1990s, at least for the
operations management community with an interest in performance measurement, was how
can these so-called “balanced performance measurement systems” be developed and
deployed. There followed a rich stream of work on the design and deployment of performance
measurement systems, which reported on research to develop processes for designing
measurement systems and barriers to their successful implementation (Bourne et al., 2000;
Dixon et al., 1990; Neely et al., 1996).
To examine these developments more fully and the basis of empirical evidence a
citation/co-citation analysis of research on performance measurement was conducted. Recent
advances in information technology and online data storage have considerably eased the
process of citation/co-citation analysis. The dataset used in this paper was constructed using
the ISI Web of Science database. Every publication that contained the phrase “performance
measurement” in its title, keywords or abstract was identified and downloaded. This search
identified 1,352 papers published in 546 different journals. The earliest paper included in the
dataset was published in 1981 and the most recent in 2005 (84 per cent of publications
included in the dataset have been published since January 1995).
The data were downloaded using the Sitkis software. Before conducting the analysis a
substantive review of the generated dataset was undertaken. Every record that related to the
20 most cited authors was reviewed and confirmed (the top 5 per cent of citations) and the
title of every journal in the dataset was checked. Other obvious errors in the dataset were
corrected in line with current best practice for bibliometric analysis.
The 1,352 papers included in the dataset provide some 31,646 citations, covering
25,040 works and drawing on 16,697 different lead authors. The most frequently cited
authors were: Bob Kaplan (398 citations), Andy Neely (153 citations), Rajiv Banker (134
citations), Abraham Charnes (111) citations and Robin Cooper (70 citations). As can be seen
from these data, there were only four lead authors whose works were cited more than 100
times and interestingly these four lead authors have somewhat different disciplinary
backgrounds – accounting (Kaplan), operations management (Neely), accounting/operations
research and information systems (Banker) and mathematics/operations research (Charnes).
Of the remaining citations – twelve lead authors were cited between 50 and 100 times, 266
were cited between 10 and 49 times and 11,929 (71.4 per cent) were cited only once. The
spread of journals from which citations appeared is interesting. In total, the citations were
drawn from 11,443 different journals. The most frequently cited journals were the Harvard
Business Review (650 citations), the International Journal of Operations & Production
Management (552 citations) and the Journal of the American Medical Association (339
citations). Together these three journals accounted for some 4.9 per cent of citations, while
the top ten journals accounted for 10.2 per cent of citations and 73.6 per cent of journals
contained only paper that was cited in the dataset. This diversity of source materials – large
number of rarely cited Works and journals – is indicative of a widely distributed and
relatively immature field of academic study, which has relatively little consensus about its
core theoretical foundations.
6
II.3.1. Performance measurement research: analysis of citations
At a more detailed level, it is possible to explore the frequency of citations for
individual pieces of work. Once again the pattern of citations is diverse, further supporting the
suggestion that the field of performance measurement is immature with little consensus. Only
10 works are cited more than 30 times (Table II.1). Eighty-seven per cent are cited only once
and 99 per cent are cited less than 5 times. The most striking observation about the data
included in Table I is the dominance of Bob Kaplan and David Norton and the balanced
scorecard. Given that research data suggest that between 30 and 60 per cent of firms have
adopted the balanced scorecard (Rigby, 2001; Silk, 1998; Williams, 2001; Speckbacher et al.,
2003, Marr et al., 2004), this dominance is not surprising, but it is interesting, especially when
one bears in mind the relative paucity of empirical research into the performance impact of
measurement frameworks, including the balanced scorecard. (Neely, 2005)
Table II.1 Most Frequently cited performance measurement works
7
II.4.1. Performance Measurement Literature Review
In literature review part, main journal and books debating Performance Measurement
and Supply Chain topics have been reviewed through the electronic libraries of Perugia
University and Bradford University. Large information is also available on the web.
8
There are not so much authors who are interested in PM. Figure II.5 shows that the
most frequently used authors are Gunasekaran A. and Reiner G. The articles of Gunasekaran
A. will be used more frequently in this paper. His frameworks and his perspective helped me
to create new frameworks for measuring PM. The main problem is in PM that there are few
authors who write articles about PM. Therefore, all articles have similar point of view. On the
other hand, the most used document type of papers is meeting and article is shown in Figure
II.6.
There are several possible explanations for why the field of performance measurement
has not professionalized from an academic perspective. The main explanation is that
performance measurement is not and never can be a field of academic study because its
diversity. From literature survey, it is obviously seen that authors come from a variety of
different disciplinary backgrounds. Figure II.7 shows us the main classes of articles are
Science and Technology and Social Science which are not so close to each other. Besides,
Figure II.8 shows us that this variety. The most frequently used articles based on Engineering,
Business and Economics, Computer Science and Operations Research and Management
Science. The main point is to combine these different disciplinarians under the Performance
Measurement title.
9
Figure II.7 Number of Articles per General Categories
10
PART III
THESIS
11
the intersection of the supply chain activity and planning level. The items in each cell are
listed in the order of importance based on percentage importance ratings.
Some measures appear in more than one cell, indicating that measures may be
appropriate at more than one management level. Measures used at different management
levels will most assuredly require adjustment to tailor them to planning and control needs of
the different levels. There is nothing novel about this approach, as it has been used for years
in management planning and control systems. This framework should be regarded as a
starting point for an assessment of the need for supply chain performance measurement.
12
Organizations could develop their own matrices for relating the elements of Performance
Based Costing (PBC)-matrices based on their unique needs. Inter-organizational teams of
Virtual business partner employees or from supply chain partners could use this methodology
to develop PBCs for assessing value system performance from end to end. Such a system
wide approach to PBC could provide a starting place for the internal PBC of individual
partners. (Gunasekaran et al., 2005)
13
III.1.1.4. Measurement of Quality of Service in Supply Chain
This frame work which is presented in Figure III.4 focuses on quality service in
Supply Chain. A framework for the modeling and measurement of Quality of Services (QoS)
in supply chain the framework is divided in two parts:
(1) Model development (Part A)
(2) Measurement methodology (Part B)
In part A, the conceptualization of the model is based on gap analysis. Gaps covered
in this framework are divided into two types. One gap type is forward which is defined as
basic supply chain direction (direction of movement of product). The other gap type is reverse
which is considered as reversed direction of the basic supply chain process (reverse to the
physical movement of the product) A typically supply chain is influenced by a variety of
external environmental factors such as economic, political, legal which may play important
role in the context of a global economy, and affect the supply chain sourcing, distribution,
plant location and other operational decisions.
In part B, the measurement of service quality of supply chain is considered as
quantitative and qualitative aspects. There is two phases in part B first one is data collection
and the second one is data analysis. Data collection is made by surveys, expert interviews and
field observation. Data analysis are made by statistical analysis, quality loss function (QLF),
and data envelopment analysis (DEA) (Seth et al., 2006)
14
primary risk drivers involved. The essence of risk perceptiveness pervaded the whole
framework. This framework also gives different functions for each component which are
included own determinants. (Ritchie and Brindley, 2007)
III.1.2. Comparison
This comparison part gives us table about the strengths and weaknesses of all
frameworks that we mentioned above. This table also shows the year of foundation of
frameworks and by whom. By using this table, the compassion among the frameworks of
Supply Chain Performance Measurement can be done easily. When building new framework,
strengths of each framework were
considered, we tried to avoid weaknesses.
For example, the first two
frameworks have the same strength feature
is having managerial aspects. From these,
it is obvious that to develop framework
having managerial aspects will be better.
Also, we can understand that to develop
framework which has changeable features
from business to business will not be so
efficient framework.
To sum up with, this table is like
our guide while creating new frameworks.
We will use this, to follow positive sides
of frameworks that crated in the past also
to avoid negative sides of them.
It is also impossible to add all
strengths into one framework and it is also
impossible to develop framework which
has no weaknesses. On the other hand, we
want to reach the aim of this work which is
to develop a framework and right sets pf
KPIs for SC performance measurement. It
is important to choose proper KPIs. While
selecting the KPIs, we consider the KPIs
that other authors used while creating their
frameworks.
15
III.2. GROUPING of GOOD CHARACTERISTICS
In this section, there is a grouping about the key elements that different authors wrote
in their article about same subject. There are seven main key elements that in the past authors
has mentioned.
III.2.3. Capacity
Gunasekaran et. al., 2001
o The role of capacity in determining the level of all supply chain activities is clear. This
highlights the importance of measuring and controlling the capacity utilization
o By measuring capacity, gains flexibility, lead-time and deliverability
Chan and Qi, 2003
o The ability of one specific activity to fulfill a task or perform a required function
o This dimension mainly concerns the maximum amount of tasks that a process or an
activity can complete under the normal conditions. (Production and transport)
III.2.4. Flexibility
Gunasekaran et. al., 2004
o Flexibility in meeting a particular customer delivery requirement at an agreed place,
agreed mode of delivery and with agreed upon customized packaging
o This type of flexibility can influence the decision of customers to place orders.
16
Theeranuphattana and Tang, 2007
o The agility of a SC in responding to marketplace changes to gain or maintain
competitive advantage
Chan and Qi, 2003
o The ability of one specific activity to adapt to the varying functional requirements or
respond to the changes.
o Flexibility is based on the range of a variable capacity of tasks, processes or activities
that can be completed in the specific period of time and at a reasonable cost.
Beamon, 1999
o Reductions in the number of backorders.
o Reductions in the number of lost sales.
o Reductions in the number of late orders.
o Increased customer satisfaction.
o Ability to respond to and accommodate demand variations, such as seasonality.
o Ability to respond to and accommodate periods of poor manufacturing performance
(machine breakdowns).
o Ability to respond to and accommodate periods of poor supplier performance.
o Ability to respond to and accommodate periods of poor delivery performance.
o Ability to respond to and accommodate new products, new markets, or new
competitors.
o Flexibility, which is seldom used in supply chain analysis, can measure a system's
ability to accommodate volume and schedule fluctuations from suppliers,
manufacturers, and customers.
17
Lai et. al., 2001
o The sample of respondents is all transport logistics service providers. The study
assesses information only from the perspectives of transport logistics service
providers. Consequently, it offers a self-reported, one-dimensional focus.
o Respondents are asked to report the perceived Supply Chain Performance (SCP) of
their companies as compared to the competition at a single point in time. Therefore,
SCP in transport logistics on a temporal dimension cannot be measured.
Cai J. et. al., 2009
o If the environment is changing drastically and frequently, mutually dependent
relationships of the KPIs accomplishment may change dramatically
and influence the accuracy of KPI cost transformation matrix (PCTM).
o The procedural framework and PCTM analysis approach are applied in enterprises
where supply chain management has already been actively deployed.
o Results from PCTM should not be adopted as direct decisions, but as supporting
information for decision-making.
o It cannot influence the details of mechanisms of KPIs accomplishment. x
Lockamy and McCormack, 2004
o It is not possible to make cross industry comparisons or to draw general
conclusions about this relationship for all supply chain populations based on the
presented results.
18
Cuthbertson and Piotrowicz, 2008
o There was a lack of consensus regarding the measures used, so there was a lack of
common measures.
o Economic measures dominated, while social and environmental aspects were often
ignored.
Saad and Patel, 2006
Should be
o Based on organization’s strategy and needs
o Applicable to concepts such as Just in Time (JIT), Total Quality Management (TQM),
SCM and other approaches used by the organizations
o Intended for all employees
o Lead to employee satisfaction
o Flexible
o Vary between locations of the organizations
Otto and Kotzab, 2003
o Six complementary ways to measure
System Dynamics, Operations and Research Perspective, Logistics, Marketing,
Form an Organization point, Strategy
19
III.3.1.2. First Framework Developed
After literature view and compassion frameworks that have been created in the
literature, we wanted to take positive sides of frameworks. In addition to these, according to
literature grouping key elements, we want to add some characteristics to the framework.
To combine everything that we mentioned above, the first frameworks was created. In
this framework, the company was divided in to two groups, the first one is internal of the
company and the other one is external company. Also internal company was divided first
according to performance attributes then each performance attribute was divided according to
management levels which are shown in Figure III.7. Some of KPIs were taken from the other
frameworks that will be explained deeply above and some of them were created for this
framework.
In this framework, most of internal KPIs were taken from Metrics for the Performance
Evaluation of a Supply Chain (Gunasekaran et. al., 2001) and Supply Chain Performance
Metrics Framework (Gunasekaran et. al., 2004). According to articles, we created for external
KPIs.
20
meet customer needs was mentioned in figure by Gunasekaran et. al., 2004. The last
operational was mentioned in article by Gunasekaran et. al., 2001.
The forth internal KPIs, which are under Cost attributes, are Cost of Goods Sold,
Utilization of economic order quantity and Cost per operation hour, respectively Strategic,
Tactical and Operational. Cost of Goods Sold was mentioned in SCOR model in Level 1.
Utilization of economic order quantity was mentioned in figure by Gunasekaran et. al., 2004.
The last operational one was mentioned in article by Gunasekaran et. al., 2001.
The fifth internal KPIs, which are under Asset attributes, are Rate of return investment,
Percentage of defects and Inventory days of supply. Rate of return investment was mentioned
in article by Gunasekaran et. al., 2001. Percentage of defects was mentioned in article by
Gunasekaran et. al., 2004. The last operational one was created for this framework.
The external KPIs were created for this framework because in literature there is no
framework which is included external perspective. It was easier to find KPIs for Employers,
Customers and Suppliers rather than Investors, Partners and Regulations. KPI for Employers
is Employers Satisfaction, for Customers, it is Customer Satisfaction and Loyalty and for
Suppliers, it is Time to delivery product. After making brainstorming with my supervisor we
decided to KPIs for the rest. For Investors KPI is Condition shares in the market. The most
difficult one is for Partners because we could not decide whether the company is
manufacturing or service. Then, we decided to focus on normal manufacturing company.
Therefore, KPI of Partners is Number of product developed with partners. The last one is for
Regulators is Sustainability of business.
To sum up with, this framework has some positive sides such as: It considers
management levels which authors mentioned about it in the literature as a strong feature, also
external and internal perspective. The main difference between this framework and the other
which are existed in literature is that this framework has also Performance Attributes. On the
other hand, it can not give anything about SC; by this framework we can only consider our
company. We have no idea about the relationship with the other parts of SC. In addition to
that, a major holistic approach is needed. Because of these weaknesses, we deiced to add this
framework SC aspect.
21
The SCOR is a process reference model that has been developed and endorsed by the
Supply-Chain Council as the cross-industry standard diagnostic tool for supply-chain
management. SCOR enables users to address, improve and communicate supply-chain
management practices within and between all interested parties.
SCOR is a management tool. It is a process reference model for supply-chain
management, spanning from the supplier's supplier to the customer's customer. The SCOR-
model has been developed to describe the business activities associated with all phases of
satisfying a customer's demand. By describing supply chains using process building blocks,
the Model can be used to describe supply chains that are very simple or very complex using a
common set of definitions. As a result, disparate industries can be linked to describe the depth
and breadth of virtually any supply chain. The Model has been able to successfully describe
and provide a basis for supply chain improvement for global projects as well as site-specific
projects.
The process reference model integrates the well-known concepts of business process
re-engineering, benchmarking, and process measurements into a cross-functional framework.
Each of the four processes at the top level is successively divided into sub-processes, first at a
configuration level, then at a process element level as shown in Figure III.8. Finally, at the
fourth level and beyond the scope of the SCOR model, activities are defined by companies
individually. Measures are defined for all processes at the three top levels, and firms provide
information about how they perform while receiving a benchmark in return against which
they can compare their own performance. This model provides not only an opportunity to see
how the firm is doing, but also a common frame of reference and a common language across
the supply chain.
1.b SCOR does not attempt to describe every business process or activity, including
o Sales and marketing (demand generation)
22
o Research and technology development
o Product development
o Some elements of post-delivery customer support
Links can be made to processes not included within the model’s scope, such as
product development, and some are noted in SCOR.
23
2.c. MAKE: Make-to-Stock, Make-to-Order, and Engineer-to-Order Production
MAKE can be processes that transform product to a finished state to meet planned or
actual demand. (Execution)
o Schedule production activities, issue product, produce and test, package, stage product,
and release product to deliver. With the addition of Green to SCOR, there are now
processes specifically for Waste Disposal in MAKE.
o Finalize engineering for engineer-to-order product.
o Manage rules, performance, data, in-process products (WIP), equipment and facilities,
transportation, production network, regulatory compliance for production, and supply
chain make risk
2.e. RETURN: Return of Raw Materials and Receipt of Returns of Finished Goods
RETURN can be processes associated with returning or receiving returned products
for any reason. These processes extend into post-delivery customer support.
o All Return Defective Product steps from source – identify product condition, disposition
product, request product return authorization, schedule product shipment, and return
defective product – and deliver – authorized product return, schedule return receipt,
receive product, and transfer defective product.
o All Return Maintenance, Repair, and Overhaul product steps from source – identify
product condition, disposition product, request product return authorization, schedule
product shipment, and return MRO product – and deliver – authorize product return,
schedule return receipt, receive product, and transfer MRO product.
o All Return Excess Product steps from source – identify product condition, disposition
product, request product return authorization, schedule product shipment, and return
excess product – and deliver – authorize product return, schedule return receipt, receive
product, and transfer excess product.
o Manage Return business rules, performance, and data collection, return inventory,
capital assets, transportation, network configuration, regulatory requirements and
compliance, and supply chain return risk.
24
Supplier. Also, Deliver and Return link the company to its Customers. The last one is Plan
can combine every part of SC. These processes come from SCOR Model which is mentioned
above.
Outside the company there are external perspectives like Partners, Investors,
Employers and Regulators. Their KPIs are shown under them. When focusing side of
Suppliers, it is obviously seen Supplier’s KPI and its Performance Attributes. On the other
hand, it is understandable from its Make, Return, Source and Deliver processes that Supplier
is also another company inside. These are same for the Supplier’sSupplier.
When focusing on the side of Customers, it is obviously seen Customer’s KPI and its
Performance Attributes. Being another company in SC is the same for
Customer and Customer’s Customer. Even if every part of SC is own features inside the
companies, when looking the
big screen there is a huge
picture. PLAN considers the
whole SC because to reach the
most beneficial SC, it is better
to plan everything according
to every part of SC.
After considering the
picture, it is beneficial to link
each Performance Attributes
for each company under
Global Supply (GS) title. That
is why the collection each
attributes under Global leads
to see Global level of SC. For
increasing the efficiency of
framework, addition of GS
Reliability, GS
Responsiveness, GS
Flexibility, GS Cost and GS
Assets shows the condition of
whole supply chain for making
better benchmarking.
The main strength of
the second frameworks is
considering whole SC, which
we wanted to reach before
building framework. Also
with this framework we can
find Global Performance
Attributes which is really
creative when we compare
other frameworks. On the
other hand, the framework has
not been tested so validation
with case studies is needed.
Figure III.10 Second Framework with SCOR model
25
PART IV
RESULTS
Furthermore, in thesis part after reading articles common characteristics of articles
were grouped according to their authors. Then, literature analysis was made by analyzing five
main frameworks were created in different years. The table about the comparison of these
frameworks was created according to their strengths and weaknesses.
In conclusion, relevant literature on PM and SCM had been reviewed and analyzed.
By investigating each framework in literature, we created strengths and weaknesses of each
of them. After according to this table, by considering strengths at the same time avoiding
weaknesses, we created the first framework.
The first framework was created by using management level and internal and external
aspects. Also, we used performance attributes, Reliability, Responsiveness, Flexibility, Cost
and Asset in this framework. But this framework was not considering the SC parts.
Then we combined this framework with SCOR Model and we got the last framework
which can show us whole SC and Global Performance Attributes is shown in Figure III.8.
Also while building the frameworks, we found proper KPIs to measure SC performance. The
result of this paper is to have a new framework for general manufacturing company by using
internal and external aspects, management level, performance attributes and SCOR Model.
Also academic paper about this work was written.
26
PART V
V.1. DISCUSSIONS
When considering the final framework, mangers can see the big picture. For example,
Global supply Reliability, Responsiveness, Flexibility, Cost and Asset give the opportunity of
reaching whole aspects of supply chain. These attributes come from not only the own
company but also supplier and supplier’s supplier and customer and customer’s customer.
In addition to that, framework can give us not only internal aspects but also external
aspects like its partners, regulators, employers and investors. Also inside the company, it is
shown that KPIs were classified according to performance attributes and management levels.
In this framework there are many creative things. Firstly, in literature there is no framework
which considers management level at the same time performance attributes. Secondly, there
is no framework which considers external issues like Partners, Investors, Regulators and
Employers at the same time in SCOR Model. Finally, it is really extraordinary framework
that combines all SC parts at the same time measures each Performance Attributes for whole
supply chain called GS Performance Attributes.
V.2. EVALUATIONS
In this part, there is an evaluation of the created framework in this paper by making
comparison with the other frameworks that have mentioned above. The main positive side of
this framework is to have many different features at the same time. For example, SCOR
Model is found by many companies as a useful tool. But they cannot measure Performance
Attributes when they use SCOR Model. In this model, it is easy to reach to all part of the SC
which is the aim of this paper to measure its performance.
On the other hand, when considering the other frameworks in literature, they focus on
some specific aspect such as financial and non-financial aspects at the same time management
levels. Or, one of them focused on management level and SCOR Model process. These are
simpler frameworks when making comparison. The only negative side of this framework is
that it has not been tested yet. Also, before using this framework, managers should pay more
attention in details. Because there is no validation of framework, this framework will not be
preferred firstly by managers. However, after using they can realize that this framework is
more useful than the others.
V.3. SUGGESTIONS
The paper suggests that is better use the framework in general manufacturing
company. My suggestion is that for the first time using the frameworks in a small company
should be more effective
27
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