Performance Measures in Operation Management Essay

Performance Measures 1. Measuring and improving performance 1.1 Performance measurement The activity of measuring and assessing the various aspects of a process or whole operation’s performance. Performance here is defined as the degree to which an operation fulfils the five performance objectives at any point in time, in order to satisfy its customers. A polar diagram can be used to see how well the 5 dimensions of performance of the operation meet requirements of the market. It is unlikely that for any operation a single measure of performance will adequately reflect the whole of a performance objective. Usually operations have to collect a whole bundle of partial measures of performance. What factors to include as performance†¦show more content†¦* Non-competitive benchmarking - compare with organizations do not compete directly in the same markets. * Competitive benchmarking - a comparison directly between competitors in the same, or similar, markets. * Performance benchmarking - a comparison between the levels of achieved performance in different operations. E.g. compare its own performance in terms of performance objectives – quality, speed, dependability, flexibility and cost – against other organizations’ performance in the same dimensions. * Practice benchmarking - a comparison between an organization’s operations practices and those adopted by another operation. E.g. a large retail store might compare its systems and procedures for controlling stock levels with a department store. Criticism of Benchmarking * Information may be inaccurate * What works for one company doesn’t necessarily work for another * Stifle innovative thinking * Homogenises market 2. Improvement priorities Two major influences on the way in which operations decide on their improvement priorities: * The needs and preferences of customers (shape the importance of operations objectives) * The performance and activities of competitors (determining achieved performance) Judging importance to customers * Order-winning: The competitive factors that directly and significantly contribute to winning business. *Show MoreRelatedBus 430 Assignment 1: Lenscrafters Case Study1307 Words   |  6 PagesLensCrafters’ operations strategy and explain how the organization seeks to gain a competitive advantage in terms of sustainability. 2. Analyze how operation management activities affect the customer experience. Select two (2) operation management challenges and provide the solutions for confronting them. 3. Examine LensCrafters’ value chain and evaluate its effectiveness to operations in terms of quality, value creation, and customer satisfaction. 4. 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