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It should be possible to monitor the measure easily without having to implement expensive computer systems or appoint additional staff. |
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Furthermore, careful consideration should be given to ensure that the measure will drive the right behaviour. If for instance in production, only efficiency or outputs are measured without a measure of the quality of product, it will drive exactly that – a store full of unsaleable product. Measures should therefore be balanced between utilisation, productivity and performance. |
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It should be possible to allocate a quantitative, objective target for each measure. |
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There should be buy-in from all stakeholders who can influence the measure. It should therefore be defined and agreed by all the key process participants, internally and externally where relevant. |
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Measures should take consideration of inputs as well as inputs to streamline a supply chain. |
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Measures should be simple and easy to understand. Visual monitoring will enable all involved to drive success. |
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Define how the measure will be calculated. A measure of "% complaints" can be easily misinterpreted. Does this refer to the number of complaints per quantity of product produced, or the number of complaints per quantity of product sold? |
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Be careful of having metrics for the sake of metrics. Define measures that focus on key performances of the process - those that will add value. |
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