Deck 14: Performance Measurement Along the Supply Chain

Question 1

SCORmark allows APICS Supply Chain Council (SCC) members to benchmark performance against selected peer companies using a benchmarking portal at the SCC's website.

Answer 1

True

Question 2

World class performance measurement systems today include assessments of environmental performance.

Answer 2

True

Question 3

While profit, revenue, and cost related performance metrics would seem to be useful in moving a company in the right direction, they often give no indication of the underlying causes of the financial performance.

Answer 3

True

Question 4

In general, firms aim toward first achieving adequate performance, and then continually improving on those measures.

Question 5

In well-managed supply chains, performance measurement systems become smaller and less complicated due to the closer relationships, trust and interactions.

Question 6

A model used for integrating supply chains and measuring partner performance is the SCOR model which separates supply chain operations into four categories: Sourcing, Costs, Operations, and Returns.

Question 7

Some researchers have indicated that the Balanced Scorecard approach can problematic and costly to implement, and even after implementation may be unsuccessful in achieving the overall objectives.

Question 8

A weakness of the labor productivity measure is that managers might be tempted to lay off workers to improve labor productivity.

Question 9

Outputs/costs of (labor + materials + energy + capital), would be classified as a complete productivity measure.

Question 10

The Balanced Scorecard framework consists of four perspectives: financial perspective, human resources perspective, inventory perspective, and the logistics perspective.

Question 11

Establishing output or productivity standards creates a goal that can drive employees and managers to do whatever it takes to reach these goals, even if it means damaging the company.

Question 12

An effective performance measurement system consists of the traditional financial information for external reporting purposes along with tactical-level performance criteria used to assess the firm's competitive capabilities.

Question 13

Supply chain strategies must consider the trade-offs between the cost, quality, sustainability, and service requirements.

Question 14

In general, performance measurement systems are mostly identical from company to company.

Question 15

A company has 5 employees that work an 8 hour shift.During those eight hours they make 80 units.The labor productivity would be 10 units/hr.

Question 16

Using cost as a departmental or business unit performance measure can actually result in actions that raise costs for the organization.

Question 17

The SCOR model's newest process category is called Enable.

Question 18

To control and enhance the capabilities of companies within a supply chain, well-designed performance measurement systems must be implemented.

Question 19

Traditional performance measures tend to link current operating characteristics to long-term strategies and objectives.

Question 20

The Balanced Scorecard approach to performance measurement seeks to improve managerial decision-making by aligning an organization's performance measures with its strategic plan and goals.

Question 21

Dominant companies within a supply chain can use their buying power to:

A) Leverage demands for supplier conformance to its supply chain requirements
B) Eliminate the need for performance metrics
C) Increase organizational productivity
D) Motivate customers to change their buying preferences

Question 22

Traditional performance measures include:

A) Cost and Revenue
B) SCOR and DCOR
C) Profit and Perfect Order Fulfillment
D) All of the above

Question 23

A company produces 300 bicycles every day.Each bicycle is worth $250.The inputs used to make those bicycles are labor, materials, and machine costs.The company pays their employees a total of $10,000 per day, the materials to make each bicycle cost $50, and the cost to operate the machines is $3000 per day.Based only on the data provided, what is this company's total productivity for one day?

A) 2.68
B) 0.33
C) 0.77
D) 1.31

Question 24

One of the primary steps in developing world-class performance measures is to define a product's functions and attributes.

Question 25

Once the supply chain partner requirements are understood, supply chain members can then:

A) Develop an appropriate information technology system
B) Develop their organizational skill sets
C) Audit their capabilities to see if they are consistent with the needs of the end customers
D) Implement a quality development program for the employees

Question 26

In well-managed supply chains, performance measurement systems become much larger and are complicated by:

A) Push supply chains
B) Varied relationships, trust and interactions
C) Demand-driven supply networks
D) SCOR supply chains

Question 27

Currently there is no software that will aid in analyzing the present carbon footprint of firms.

Question 28

Which of the following is a traditional performance measure?

A) Average safety stock levels
B) Overall total productivity
C) Number of suppliers who are quality certified
D) Number of product return per units sold

Question 29

When utilizing performance standards, the difference between the standard and the actual performance is called the:

A) Productivity Gap
B) Organizational Variance
C) Certified Variance
D) Performance Variance

Question 30

Web-based balanced scorecard applications are sometimes referred to as performance dashboards.

Question 31

Supply chain perfect order fulfillment performance measures the average percentage of orders that are filled on or before the requested delivery date.

Question 32

Nowadays, successful supply chains are those that in the face of ever changing customer needs can continue to:

A) Deliver the right combination of cost, quality, and customer service
B) Increase the number of suppliers used
C) Eliminate the need for performance metrics
D) All of the above

Question 33

Cost-based performance measures _____ reflect the underlying performance of the productive systems of an organization.

A) Usually
B) Always
C) Rarely
D) Never

Question 34

According to the textbook, which of the following zoos audited their waste recycling performance?

A) San Diego Zoo
B) Lincoln Park Zoo
C) Phoenix Zoo
D) Bronx Zoo

Question 35

Performance measurements:

A) Assist in pricing of products
B) Help to eliminate non-value-creating activities
C) Help identify new customer requirements
D) Both B & C

Question 36

Which of the following is a problem with a company establishing standards for performance? For example: production rates of 10 units per hour.

A) Employees are driven to work so fast they may make defects
B) Employees and managers may falsify production records
C) Once performance goals are reached, incentives to improve may disappear
D) All of the above

Question 37

A company produces 750 bicycles in one week.The labor used to make the bicycles was 400 hours.The next week, output was 710 bicycles using 360 hours.What was the change in labor productivity?

A) Increased by 1.9%
B) Increased by 5.2%
C) Decreased by 2.4%
D) Decreased by 3.3%

Question 38

Supply chain cash-to-cash cycle time is a performance measure that provides the average number of days between selling the end product to the customer and receiving full payment for the goods.

Question 39

World-class performance measures can be used in different functional areas of a firm to satisfy objectives, enhance the value of the firm's products and services, and increase customer satisfaction by providing measures in which of the following capability area(s)?

A) Quality
B) Cost
C) Customer Service
D) All of the above

Question 40

Which of the following is NOT a problem with using cost, revenues or profits as performance measures?

A) It is difficult to attribute costs to various functional units
B) Cost and profit information could be hidden or manipulated
C) They are difficult to compare with other firms
D) Weaknesses in functional areas are not identified

Question 41

The textbook described 7 supply chain specific performance measures adopted by supply chain trading partners to further align supply chain objectives.List FOUR of those metrics.

Question 42

Which of the following supply chain performance metrics measures the average percentage of orders that arrive on time, complete and damage-free?

A) Total supply chain management costs
B) Supply chain perfect order fulfillment performance
C) Supply chain cash-to-cash cycle time
D) Supply chain delivery performance

Question 43

Which of the following is focused on promoting the sharing of environmental responsibility along the supply chain?

A) SCOR
B) Balanced Scorecard
C) GSCM
D) Single-factor productivity measures

Question 44

Describe, in general terms, how the SCOR model works.What are the benefits to firms using this model?

Question 45

Which of the following BSC framework perspectives deals with new product development, innovative elements of processes, and time-based measures?

A) Financial
B) Internal Business Process
C) Customer
D) Reliability

Question 46

In your opinion, how can using organizational costs, revenues, and profitability performance measures be ineffective or even damaging in managing a process, system, or organization?

Question 47

Which of the following would be considered a way to measure Supply Chain Environmental Performance?

A) Percentage of partners that are ISO 9000 certified
B) Measuring the Supply Chain Carbon-to-Carbon Cycle Time
C) Percentage of partners that have created a director of environmental sustainability position in their company
D) All of the above

Question 48

Companies typically like to design scorecards that fit their business and industry.As a result there are now software applications that can help companies design scorecards that fit their individual needs.These web-based balanced scorecard applications are often referred to as:

A) E-Cards
B) Executive Barometers
C) Performance dashboards
D) SCOR Boards

Question 49

Briefly describe the FOUR primary perspectives of the balanced scorecard.

Question 50

Briefly, explain why understanding the end customer is important to all supply chain parties in developing an effective performance measurement system.

Question 51

Explain the difference between Total productivity and Single-factor productivity.

Question 52

According to the SCOR model, which of the following is NOT one of the five supply chain operation process categories?

A) Plan
B) Market
C) Return
D) Source

Question 53

Which of the following supply chain performance metrics measures the average percentage of orders that are filled on or before the requested delivery date?

A) Total supply chain management costs
B) Supply chain perfect order fulfillment performance
C) Supply chain cash-to-cash cycle time
D) Supply chain delivery performance

Question 54

According to the textbook, the initial step in creating an effective performance measurement system is to:

A) Develop the process
B) Contact supply chain partners
C) Identify the firm's strategic objectives
D) Improve performance as much as possible

Question 55

The textbook described 7 important steps in creating an effective performance measurement system.List FOUR of those critical steps.

Question 56

Which of the following was designed by Kaplan and Norton in an effort to align performance measures with strategic plans and goals?

A) Balanced Scorecard
B) SCOR
C) DCOR
D) GSCM

Question 57

Which of the following is NOT one of the four perspectives of the BSC framework?

A) Financial
B) Internal Business Process
C) Customer
D) Reliability