Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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9 and 10
Transcribed Image Text:7. Why are performance measures so important to the organization?
8.
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How can financial and productivity measures be both good and bad for tracking a firm's performance?
9. Using the formula for labor productivity, describe all the ways a firm could increase labor productivity.
10. Using table 2.2, list a number of performance measures you might use for a sandwich shop and then
your university.
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11.
How could a balanced scorecard help improve a firm's performance measurements? Design one for your per-
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Chaptor 2 | Corporate Strategy, Performance, and Sustainability
CS
TABLE 2.2 Some Common Operations Performance Measuresnian ei mit odi 2nsso tiewo1g xsbni zidi zA
Performance category
Measures
• Net profit margin (net income after taxes/net sales)
• Current ratio (current assets/current liabilities)
• Inventory turnover (cost of goods sold/average inventory value)
• Total cost compared to standard or desired cost (purchase, labor, manufacturing,
and transportation cost; e.g., purchasing efficiency = actual purchases/purchase goal)
Financial
Single-factor productivity (outputs/labor $; outputs/material $)
Multiple-factor productivity (outputs/[labor $ + material $ + energy $])
Productivity
Number of defects per unit, or number of complaints per customer
• Cost of poor quality (scrap losses + warranty costs + rework costs + return costs)
Average time between product failures mue
Quality
1020
ol amil wolls
2mt sdi no (1odsl to tao Product returns per units sold; warranty claims
susDs o onimmsisb ol m Number of work centers/processes using statistical process controles doe) uguo
am viivitoubog s209on Number of employees with quality training
per
units sold
Number of quality awards received
boucroice o suh o ue brocca
Percentage of suppliers with quality certifications
of elovsl
Customer service
18
• Order delivery time accuracy; order quantity accuracy s aid oveworlsyivito
• Customer satisfaction score
cpesbet worcu
• Number of customer services available
Complaint resolution time
no 15 s ole
sqmi se1svba ds
29 m iviouborg 2v Time needed to change delivery schedules, to change a customer's order t orl
Number of stockouts per period
bordaug isdi boanmob Iedol Completeness of websiteut
CSU
Csu broAG to po gaus
nim Inos Isdolg srli ai Jnioq ni suso boog A
• Number of "friends" on social websites
• Call center capabilities
suk unu couibsus
sm bos 1odel 1ot etzo
bbA wiivitouborq no tongumber of service awards received
nb cosp bcee on
vignede seo1 elsns
Ethics and sustainability
grigoer ylienoil
Number of business ethics and sustainability initiatives adopted
Percentage of purchases from small, minority, or women-owned suppliers
1009.1 diiw olie no algo Percentage reduction in greenhouse gas emissions (carbon footprint)
Fo ps pereL
rieud ts
COU
• Number of fair trade products purchased
• Percentage of waste recycled
g combjex
aim sd oels m3 8972m vlivitoubont
goir 29ohn 2svawo Percentage of suppliers that are ISO 14000 certified im enn smo nots
idivas bio vilaus
Number of ethics/sustainability awards received
duo 1o boonbong
or almost $5 million in profits per hour." These profits were not necessarily the result of something Exx-
1 :12](https://content.bartleby.com/qna-images/question/2e4e9fba-2965-475b-951b-5dcd96d38a0e/0a664ba0-fda7-4372-a382-2dcfc3334c5d/4yh54q_processed.jpeg)
Transcribed Image Text:Σ
B.
alt
Chaptor 2 | Corporate Strategy, Performance, and Sustainability
CS
TABLE 2.2 Some Common Operations Performance Measuresnian ei mit odi 2nsso tiewo1g xsbni zidi zA
Performance category
Measures
• Net profit margin (net income after taxes/net sales)
• Current ratio (current assets/current liabilities)
• Inventory turnover (cost of goods sold/average inventory value)
• Total cost compared to standard or desired cost (purchase, labor, manufacturing,
and transportation cost; e.g., purchasing efficiency = actual purchases/purchase goal)
Financial
Single-factor productivity (outputs/labor $; outputs/material $)
Multiple-factor productivity (outputs/[labor $ + material $ + energy $])
Productivity
Number of defects per unit, or number of complaints per customer
• Cost of poor quality (scrap losses + warranty costs + rework costs + return costs)
Average time between product failures mue
Quality
1020
ol amil wolls
2mt sdi no (1odsl to tao Product returns per units sold; warranty claims
susDs o onimmsisb ol m Number of work centers/processes using statistical process controles doe) uguo
am viivitoubog s209on Number of employees with quality training
per
units sold
Number of quality awards received
boucroice o suh o ue brocca
Percentage of suppliers with quality certifications
of elovsl
Customer service
18
• Order delivery time accuracy; order quantity accuracy s aid oveworlsyivito
• Customer satisfaction score
cpesbet worcu
• Number of customer services available
Complaint resolution time
no 15 s ole
sqmi se1svba ds
29 m iviouborg 2v Time needed to change delivery schedules, to change a customer's order t orl
Number of stockouts per period
bordaug isdi boanmob Iedol Completeness of websiteut
CSU
Csu broAG to po gaus
nim Inos Isdolg srli ai Jnioq ni suso boog A
• Number of "friends" on social websites
• Call center capabilities
suk unu couibsus
sm bos 1odel 1ot etzo
bbA wiivitouborq no tongumber of service awards received
nb cosp bcee on
vignede seo1 elsns
Ethics and sustainability
grigoer ylienoil
Number of business ethics and sustainability initiatives adopted
Percentage of purchases from small, minority, or women-owned suppliers
1009.1 diiw olie no algo Percentage reduction in greenhouse gas emissions (carbon footprint)
Fo ps pereL
rieud ts
COU
• Number of fair trade products purchased
• Percentage of waste recycled
g combjex
aim sd oels m3 8972m vlivitoubont
goir 29ohn 2svawo Percentage of suppliers that are ISO 14000 certified im enn smo nots
idivas bio vilaus
Number of ethics/sustainability awards received
duo 1o boonbong
or almost $5 million in profits per hour." These profits were not necessarily the result of something Exx-
1 :12
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