Operations Management - ERP Metrics 5 - Measurement and Presentation Tools
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Description
Description: These modules introduce students to the theory and applications of enterprise resource planning and operational systems and processes. A range of business decision analytics is covered in the course that has as their goal, optimizing economical use of resources and maximizing productivity and efficiency in the firm. Drawing on the recognizable tools, information technology and methods of operations management students will develop an understanding of enterprise planning, analytic models, deterministic methods of analysis, and scrutiny of results.
This course features dynamic and engaging video with audio narration, infographics and short quizzes to test your knowledge.
Background: One very popular tool is the balanced scorecard. To establish standards, managers often use the balanced scorecard, which provides four indicators for progress. A visual representation of the balanced scorecard is the strategy map. Measurement management techniques help managers make evidence-based judgments about performance.
Balanced Scorecard
The balanced scorecard is a strategic tool used to coordinate the various operational areas of the business to achieve its mission and goals. It uses both non-financial and financial measures to give managers a broad view of business performance.
Primary Purposes of the Balanced Scorecard:
• Align a balanced set of performance metrics with business strategy and vision
• Provide management and work teams with the information necessary and sufficient to meet their objectives and goals
• Create “line-of-sight” at lower levels of the organization
• Foster and support process continuous improvement initiatives
Concepts such as the balanced scorecard are considered practical tools for metric and performance management. The measurement-managed companies were those in which senior management reportedly agreed on measurable criteria for determining strategic success, and management updated and reviewed semiannual performance measures in three or more of six primary performance areas. The six areas were financial performance, operating efficiency, customer satisfaction, employee performance, innovation/change, and community/environment.
The results: “A higher percentage of measurement-managed companies were identified as industry leaders,” concluded, “as being financially in the top third of their industry, and as successfully managing their change effort.” (The last indicator suggests that measurement-managed companies tend to anticipate the future and are likely to remain in a leadership position in a rapidly changing environment).
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