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Supply Chain Implementation
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MEASURING THE IMPLEMENTATION

What makes a good measurement of performance? Did your boss tell you you're doing a good job? Did you get your annual raise? A true performance measurement must be something tangible and be quantifiable. The following are the key elements of a meaningful perfor­mance measurement.

1.  What are the objectives that should be measured? For example, raise inventory turns from 4 to 12.

2.     Are the tools and processes in place to meet the ob­
jectives? For example, an ERP has been installed to
improve resource management.

3.     What is the timeline in which the objective must be
completed? For example, inventory turns are to meet
the new levels within 6 months.

4.     What is the current measurement of the current processes? For example, inventory turns are at 4.

5.  How will the objective be measured? For example, we will use the inventory summary report from the ERP and the COGS from the sales summary report to calculate turns.

Once you can answer all five questions, then you can measure the success of the implementation. One of the six basic background elements was the goals and objec­tives for the implementation. Ensure the goals and ob­jectives set can be measured by the criteria above.

SUMMARY

No one will ever have the same level of visual clarity and enthusiasm towards the supply chain vision than the owner of that vision. How the tactical and logistical pro­cesses are defined, documented, communicated, and executed will be integral to a successful implementation of the project. In order to ensure the vision can be trans­lated successfully into new processes, a letter of under­standing should be written to communicate a common, consistent message to all internal and external partners. A statement of work should follow to document the tactical processes and partners responsible for execution. Then, using appropriate performance measurements to confirm the project is meeting the intended goals and objectives supporting the vision, a successful implemen­tation will follow. The amount of time spent planning and organizing implementation will have a direct result on the success of your partners by keeping them focused on execution. Maybe there is still hope yet for that VP position.

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Lean Manufacturing Articles and click on Series 13


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