SCM 300: Final Exam
Performance metric (PM) - correct answer ✔✔a single performance measurement used to evaluate,
motivate, and improve performance.
System of metrics - correct answer ✔✔A group of metrics that collectively attempt to provide a multi-
dimensional view of a resource or outcome.
Reasons organizations use PMs - correct answer ✔✔(a) Helps to establish and support standards,
(b) Motivate good behavior,
(c) Identify trends,
(d) Managing large numbers of resources,
(e) Performance data can facilitate decision making and planning
Importance of Goals and Stakeholders - correct answer ✔✔key to developing metrics that meet
stakeholder goals is first recognizing all the stakeholders and then understanding their individual goals.
Consequences of poor metrics - correct answer ✔✔ill-conceived metrics can motivate bad behavior: (ex)
SC goals are not met, poor output, waste, undesirable employee behaviors, managers may make poor
decisions, employee victimization, undeserved winners, lack of contentment.
Requirements of a good metric - correct answer ✔✔measureable, easily understood, attainable,
strategically oriented, easy to measure, provides value, provides guidance, cheater proof
SMART metrics - correct answer ✔✔a metric that is Specific, Measurable, Attainable, Relevant, and
Timely. A helpful device that can guide managers in the development of useful managerial metrics.
3 Key measurement system attributes - correct answer ✔✔(1) Effective: were the desired goals met?
(2) Efficient: A measure of the resources used in the process.
(3) Adaptable: measure of the conditions under which the tasks were completed.
, Keys to designing a system of metrics - correct answer ✔✔Stakeholders and goals, Good metrics,
Simplicity, Completeness, Redundancy (avoid), Continuous improvement, Leadership
KPIs (Key Performance Indicators) - correct answer ✔✔Individual performance metrics identified by the
company as being imperative to achieving the organization's most important goals.
Executive dashboards - correct answer ✔✔computer-generated visual representation of a company's
performance that is often available to executives on any of their digital devices. Often include KPIs, real-
time and historical data, and color-coded performances centers that helps them quickly identify positive,
negative, and neutral output.
Managerial paralysis - correct answer ✔✔situation where managers are inundated with data. This slows
decision-making and may result in managers stalling or avoiding decision-making.
Common measurement pitfalls - correct answer ✔✔Managers fail to use the data, Blind belief in
institutional metrics, incomplete measurements, Utilizing too many metrics, Driving toward perfection
may waste resources, What do those numbers really mean?
Shared metrics - correct answer ✔✔A metric that impacted by two related parties.
Balanced scorecard (BSC) - correct answer ✔✔performance management tool that focuses on strategic
activity and outcomes. (tracks 4 different traditional output areas.)
(1) Financial results
(2) Customer-related results
(3) Internal business process results,
(4) Learning and growth results.
-All of these are used to locate problems before they impact financial results.
SCOR Model (Supply Chain Operations Reference Model) - correct answer ✔✔Measurement tool that
allows SC partners to track performance, communicate progress, and develop opportunities for
improvement. (5 primary SC processes: Plan, Source, Make, Deliver, Return) This is a tool used to
integrate the SC.