Chapter 12 – Performance Measurement
There are two types of measures: Activity based and process based.
1) Activity based measures:
These measures focus on individual tasks required to process orders e.g. customer orders entered, etc.
2) Process based measures:
a) These measures consider the customer satisfaction delivered by the supply chain.
b) They examine total performance cycle time or total service to measure the total effectiveness of all activities.
There are 3 basic productivity measures
Static productivity ratio
Dynamic productivity index
Surrogate productivity measure
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