Learning Activity #1: 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.
Learning Activity #2: 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.
I want each reference page under each learning activity question and also in either mla or apa format.
Please I want it in bullet format, please in bullet format.
Here is the instructor insight for leaning activity 1 below:
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 help 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 •
• Continuing education units earned/skill•
• Employee training satisfaction scores
Scorecard Quadrant 2 - Purchasing Skills Applied - The Performers •
• Internal customer complaint trend - by reason
• External customer complaint trend - by reason
• % of suppliers certified by key skill•
• % skills mastered / skills required•
• Supervisor's evaluation trends•
• Employee climate survey scores•
• Letters of appreciation or rewards 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 supplier•
• QA inspection pass rate/ total attempts •
• Internal customer complaint trend - by process •
• External customer complaint trend - 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 commodity
• Litigation costs by product/ total product revenue•
• IT availability/accuracy for supply chain support•
• Average lead-time of non-standard items •
• # of error-free quotes / total•
• # of error-free awards / total•
• Purchasing budget adjustments, +/-•
• Trend in transportation costs - by cause •
• Cost of regulatory 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 this as "confronting the brutal facts."
• 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!"