Performance measurements

PERFORMANCE MEASUREMENT
Synchronous Management has developed a series of operational performance measures which support accelerated material flow. Measures will vary for profit centers, costcenters, and individual departments. The intent for each measure is to identify opportunities for increasing throughput, and reducing inventory and operating expense at the organizational level, as wellas to improving the ratios among the three. For each performance measure, it is important that trends be monitored (usually on a weekly or monthly cycle), and causes and corrective actions beidentified and implemented as required. The following operational measures are, of course, in addition to financial performance measures already in effect.
|METRIC|PROFIT CENTER |COST CENTER |DEPT |
|THROUGHPUT | | | ||Total rate of sales |X |X | |
|Sales by product line ||X | |
|On-time customer requested ship date | |X | |
|Delivery lead times by product line| |X | |
|On-time performance to pull system | | |X ||INVENTORY | | | |
|Total inventory dollars |X|X | |
|Annual inventory turnover |X |X | |
|Cycle times by inventory account...