Implement demand driven smart metrics to drive andsustain dramatic gains in flow and improve ROI performance
What if the objective of minimizing unit product cost that is hard coded into all reporting and measurement systems is simply "bad math" that drives decisions and actions that destroy ROI?
In today's volatile, globally competitive environment, new decision-making tools are required to monitor, measure, and improve total organizational performance.Adherence to "old" operational rules, tools, and behaviors is killing competitiveness in most enterprises. A fundamental shift is required. Cowritten by internationallyrecognized experts in the field, Demand Driven Performance explains why current measurement forms must be replaced. The authors present a demand driven blueprint and the smart metrics to maximize flow and ROI.
"The methods described in this book worked in one of the most complex manufacturing operations that you can imagine with very effective results." -- From the Foreword by Dan Eckermann, former President and CEO, LeTourneau Technologies, Inc.
THIS PRACTICAL, TIMELY GUIDE OFFERS:
Learn how to implement demand driven metrics for vast improvement in measuring performance. Demand Driven Performance details why the outdated forms of measurement are inappropriate for current circumstances and reveals an elegant set of global and local metrics to fit today's demand driven world. The book shows how to minimize the organizational and supply chain conflicts that impede flow, and eventually, corporate success. Metrics are used to create a benchmark for measuring improvement and to identify and focus on those improvements that are most needed, and that have the highest ROI. However, the world has fundamentally changed in terms of delivering value and driving strong financial performance and growth. The continued use of outdated metrics is driving companies in the wrong direction giving them false signals, putting their personnel into conflict at all levels of the organization, and also wreaking havoc in the supply chain. This book offers solutions to remedy these issues. Defines a new demand driven approach for measuring total organizational performance and the corresponding local metrics that integrate with those measures Advocates a systems approach to measuring improvement, and shows how conventional metrics are no longer appropriate Focuses on reliability, stability, speed/velocity, strategic contribution, local operating expense, and local improvement waste A case study demonstrates the processes in the book and provides you with the technology and tools needed to achieve a demand driven system
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