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Today's Economy

Essay by   •  April 23, 2013  •  Research Paper  •  567 Words (3 Pages)  •  1,403 Views

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In today's economy, it is essential to develop metrics to have a healthy supply chain. Metrics assist in outlining a plan that not only offers performance measurements nevertheless also assists planners in identify what ought to be measured. The metric tools helps in making clear the organization's strategy and vision by providing feedback from internal process and external outcomes. Metrics are, "Measures directly connected to an organizations strategy: financial performance, customer knowledge, internal supply chain processes, and learning and growth" (Pearce & Robinson, 2009, p. 202).

The advantages of business measuring techniques tell an organization everything about the performance of a process, therefore use of metrics are important; They are set of measurement systems that quantify and assess information for interpretation with an organization. Organization's should master matrices because of the usefully information that interpreted. For example, when providing a service, metrics can tell an organization how many customers are pleased with the organization's service or average wait time spent on the phone or in the lobby of dentist, doctor, or utility company. The text states three standard matrices used in business, which are process charts, flowcharts, and service blueprints can give clear understandings into the present procedure and the proposed changes. Data analysis tools, such as cause-and-effect diagrams, Pareto charts, bar charts, and checklists, allow the analyst to go from problem symptoms to root causes.

Manufacturing uses several measuring techniques to evaluate a new process. Measurement is as much about processes and policies as it is technology. Statistical process control, optimization techniques, statistical forecasting techniques, material requirements planning, flexible automation, lean manufacturing, total quality management, reengineering, Six Sigma programs, enterprise resource planning, and e-commerce are used to track the progress and success of a new process through the stages. However, these techniques go beyond traditional manufacturing planning and control systems. Within every technique there are advantages and disadvantages. The advantage of measuring techniques is that a wide range of data sets can be measured and returns on investment (ROI). In addition, other advantages are balanced key performance indicators (KPI), empowered end-users, improved quality of service, improved organization reputation, and full utilization of network capacity.

Accepting best business practices that fit the Army's situations can assist in improving the efficiency of the supply chain and help warfighters. Through effective supply chain management the Army can recognize the needs of the warfighter, and this is done by developing and creating metrics across the whole supply chain.

Army logisticians gather key data on a day-to-day basis, such

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