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    Measures of operational performance

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    What is your understanding of the traditional measures of operational performance?

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    Unit 2 DB Files Materials Planning

    You drop in at a lunchtime discussion among several of the manufacturing supervisors. Most of them have been around for years. They have been discussing how their own performance evaluation criteria may change with the transition to more modern techniques of operations and inventory control.
    They turn to you and ask for your opinions on these topics, which are near and dear to them.
    • What is your understanding of the traditional measures of operational performance?
    o include which traditional measures each of the following managers would be held responsible for:
    • Manufacturing supervisors - traditional metrics are labor utilization and production efficiency. Labor utilization measures the effectiveness of labor hours of the manufacturing manager's employees. This measure the relationship between the time resources against the actual time used to produce the product. For example, the main machine is available 18 hours a day and is utilized for 15 hours for yesterday. The utilization rate is 15/18 = 83.33%. Efficiency measures the performance of the production manager against the industry standard or company standard. The efficiency is the actual output measured against the standard output for specific ...

    Solution Summary

    The solution discusses the traditional measures of operational performance.