Discussion Thread LA around, business and finance homework help

Need discussion thread for each LA around 110-140 words. NOTE: used the reference that’s included

Score-carding performance:

LA1: Instructor Insights contain possible measures for use in a Purchasing Balanced Scorecard. No one measure fits all scorecards.

For each of the 4 quadrants (sections) of the purchasing unit scorecard, pick (or create) one measure of most value to the VP SC in a firm of your choice. Be sure to explain your reasoning.

LA2: Describe at least 3 relevant performance measures you might employ to ensure that you satisfy your final project assignment for next week on time, with quality, and completely.

Instructor Insight

There are several reasons to measure performance:

To support better decision-making

To improve the focus of business communications

To assess feedback or results in time to act responsively

To direct talents toward reducing risk and improving outcomes

To determine a basis for performance rewards or penalties

To drive the most effective performance possible

But, measurement is not free.

Some measures are simple to collect; some far more difficult.

Measures are easy when relevant data is readily available.

Yet, beware of too much data and too many measures.

Be careful that measures are distinctive, not overlapping.

It’s a balancing act.

That’s why you might consider balancing your SC scorecard(s).

A scorecard is highly business sensitive. You track vital problem trends, and then remove them from the scorecard after they improve! Score carding is a serious save-the-firm set of critical performance measures.

There is no established industry standard for score carding. You start with the most debilitating problems and fix them first.

Often there is an inherent flow to scorecard from training to strategic outcomes. What follows are some potential metrics that the purchasing unit in an SC might use:

Scorecard Quadrant 1 – Training and Mentoring – The Foundation

% of purchasing workforce trained

% untrained scheduled for training

% trained who are qualified – by key positions

% mentored for professional development

% mentored who qualified – by key positions

% suppliers trained in key skills

% employees certified as CPM

Continuing education units earned/skill

Employee training satisfaction scores

Scorecard Quadrant 2 – Purchasing Skills Applied – The Performers

Internal customer complaints – by skill

External customer complaints – by skill

% of suppliers certified by key skill

% CPMs holding key positions / required

% skills mastered / skills required

Supervisor’s evaluation trends

Employee climate survey scores

Letters of appreciation received

Value of employee performance rewards

% negotiations that met business goals

% suppliers with high cooperation scores

Employee retention rate

Scorecard Quadrant 3 – Commodity Councils – Internal Outcomes

% on-time delivery – by council

% on-time delivery – by suppliers

QA inspection pass rate/ total attempts

Internal customer complaints – by process

External customer complaints – by process

Value of TOC reductions realized/ planned

Value of supplier innovations/ planned

Value of standard items/ total

% internal target prices reached

% outsourced target prices met

# of preferred suppliers/ total supply base

# of compliant suppliers/ total

# of suppliers replaced/ total

# single source suppliers/ total

# of purchase card transactions/ total

% successful performance audits/ total

Supplier satisfaction scores by council

Council satisfaction scores by suppliers

Litigation costs by product/ total product revenue

IT availability/accuracy for supply chain support

Average lead-time of non-standard items

# of error-free RFPs / total

# of error-free awards / total

Purchasing budget adjustments, +/-

Trend in transportation costs – by cause

Cost of regulation compliance

Audited savings from market / industry research

Scorecard Quadrant 4 – Strategic Outcomes

Customer satisfaction by product (mission success rate)

% reduction in purchasing spend

% reduction in inventory realized

% of suppliers/partners in early product design

Improvement in inventory turnover

% of stock-outs or back-orders

Return on purchasing investments (savings realized)

% purchasing strategic objectives met

Revenues for new or improved products

New product time-to-market/ goal (time-to-deploy)

% successful partnerships/ total

Forecasting accuracy rate

The real skill in score carding is to select the worst performance drivers,
then resolve them and go on to the next worst.
Some business people refer to it as “confronting the brutal facts.”

FYI: for measures of satisfaction, many scorecards use strongly agree to strongly disagree scales – to assess trends.

Navy Admiral Grace Hopper once said, “One accurate measurement is worth a thousand expert opinions!




http://zums.ac.ir/files/research/site/ebooks/management-organisation/fundamentals-of-supply-chain-management.pdf (PAGES 30-49)


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