www.scl.gatech.edu/mmpsclo
Supply Chain Management Series
November 4-6, 2015 | Atlanta, GA
Measuring and Managing Performance in Supply Chain and Logistics Operations
Paula FergusonLecturer, Georgia TechSupply Chain and Logistics Institute
Measuring and Managing Performance in Supply Chain and Logistics Operations
MEASURING AND MANAGING PERFORMANCEPaula Ferguson
Lecturer, Supply Chain and Logistics Institute
THE RELEVANCE OF PERFORMANCE MANAGEMENT
10/7/2015 3
Leadership Data ExplosionPerformance Improvement
MANAGING AND MEASURING PERFORMANCE
10/7/2015 4
PERFORMANCE METRICS
Types
Quality
Principles
STRATEGIC USE
Perf. Improvement
Benchmarking
Project justification
DASHBOARDS
Alignment
Technology
Dimensions
MANAGING AND MEASURING PERFORMANCE
10/7/2015 5
PERFORMANCE METRICS
TYPE OF PERFORMANCE METRICS
FINANCIAL PRODUCTIVITY VELOCITY QUALITY
PRINCIPLES OF PERFORMANCE METRICS DESIGN
0.1 Balance > between the four types
0.2 Alignment > with goals of the business
0.3 Control > over the metrics
0.4 Lateral Coherence > amongst metrics
0.5 Aggregability > upward
CHARACTERISTICS OF PERFORMANCE METRICS
S
M
A
R
T
pecific
easurable
ttainable
ealistic
imely
10/7/2015 9
DASHBOARDS
PERFORMANCE DASHBOARDS ALIGNMENT
EFFICIENCY
LIQUIDITY
VALUE CREATION
PROFITABILITY
GROWTH
TRIDIMENSIONAL PERFORMANCE DASHBOARDS
Perspective
Context
Object
10/7/2015 12
STRATEGIC PERFOMANCEMANAGEMENT
PERFORMANCE IMPROVEMENT
WHAT CAN’T BE MEASURED CAN’T BE IMPROVED
PROJECT JUSTIFICATION
• Internal Rate of Return•Project Payback
•Net Present Value•Economic Value Added
•Return on Capital
BENCHMARKING
MANAGING AND MEASURING PERFORMANCE
10/7/2015 16
PERFORMANCE METRICS
Types
Quality
Principles
STRATEGIC USE
Perf. Improvement
Benchmarking
Project justification
DASHBOARDS
Alignment
Technology
Dimensions
QUESTIONS?
Measuring and Managing Performance in Supply Chain and Logistics Operations
GeorgiaTechSCL
Georgia Tech Supply Chain & Logistics Institute
@GTSCL
http://www.youtube.com/gtsclwww.scl.gatech.edu/mmpsclo
Supply Chain Management Series
November 4-6, 2015 | Atlanta, GA
Measuring and Managing Performance in Supply Chain and Logistics Operations