Deck 14: Performance Measurement Along the Supply Chain

Question 1

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.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

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 6

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

Question 7

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

Question 8

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

Question 9

A current high stock price means the firm is performing well.

Question 10

In general,performance measurements systems are identical from company to company.

Question 11

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

Question 12

With supply chains,performance measurement systems become smaller and less complicated due to varied relationships,trust and interactions.

Question 13

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 14

A company has 5 employees that work an 8 hour shift.During those eight hours they make 80 units.The labor productivity would be 10.0.

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

A company produces 750 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 $7500 per day,the materials to make those bicycles cost $75 per bike,and the cost to operate the machines is $2500 per day.Based only on the data provided,what is this company's total productivity for one day?

A)1.875
B)2.830​
C)0.353​
D)3.333​

Question 22

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

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

Question 23

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 these​

Question 24

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 25

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 26

Traditional performance measures include:

A)Cost and Revenue
B)Revenue and SCOR​
C)Profit and Perfect Order Fulfillment​
D)SCOR and DCOR​

Question 27

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 28

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 29

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

A)Plan
B)Sell​
C)Return​
D)Source​

Question 30

A company produces 400 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 those bicycles cost $50 per bike,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)3.03
B)0.33
C)0.77
D)1.31

Question 31

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 their suppliers​
C)Eliminate the need for performance metrics​
D)All of these​

Question 32

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 33

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

Question 34

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 35

When departments operate in ____,departments are more focused on meeting functional standards instead of optimizing overall supply chain performance.

A)SCOR
B)Scorecarding​
C)Functional silos​
D)Collaborative relationships​

Question 36

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 37

With 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 38

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 39

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 40

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 produce false records​
C)Once performance goals are reached, incentives to improve may disappear​
D)All of these​

Question 41

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

Question 42

Briefly describe the FOUR primary perspectives of the balanced scorecard.

Question 43

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 44

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 45

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

A)Develop the process
B)Contact supply chain partners​
C)Identify the firm's strategic objectives​
D)Reduce firm debt to zero​

Question 46

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

Question 47

Which of the following would be considered a way to measure the 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 these​

Question 48

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

Question 49

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 50

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 51

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

Question 52

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