Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 3.2, Problem 9P
Summary Introduction

To think critically about: Types of organizations facing challenges in aligning operational KPIs and strategic priorities.

Introduction: Key Performance Indicators (KPI’s) are utilized by organizations to assess performance in organizations. They are used as measurable values that enable the organization to measure the success of the performance, these are used to evaluate: key objectives, departmental performance, overall performance, and individual performances. Aligning operational KPI’s with strategic priorities is essential to ensure the organization is headed down the right path, however certain organization face difficulties in doing so.

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What types of organizations are likely to face the largest challenges in achievingalignment between operational KPIs and strategic priorities?
Li & Fung is a global trading company with clients beingmajor retailers such as Wal-Mart, Target and Disney Worldserving a network of 12,000 suppliers. Li & Fung is engaged in collaborative planning, relying on collaborative technol-ogy to forecast forthcoming trends. Being an intermediary between customers and suppliers, collaborative planning is critical for the company. Li & Fung used to deal with its cli-ents mostly by phone and fax, with e-mail counting as high technology. But thanks to a new web-services platform, its processes have speeded up. One of the most important tech-nologies has turned out to be videoconferencing. It allows buyers and manufacturers to examine the colour of a mate-rial or the stitching on a garment. The information system also allows Li & Fung to make changes fast as well as to lookacross its operations to identify trends.a) Explain the organizational objectives that CPFR is tryingto achieve. Stress its advantages and disadvantages.b) A…
Evaluating strategies on a continuous rather than a periodic basis is desired. Discuss the pros and cons of this statement?
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