Research on the application of process based perfo

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Research on the application of process based performance evaluation in supply chain management

many enterprises are often confused about what performance indicators to design and how to analyze these performance indicators in the process of operation and management. The author talks about the application of process based performance evaluation in supply chain management. Similarly, this method can also be used to evaluate the efficiency of supplier order fulfillment

1. Learn to decompose process elements

the author has never recommended complex concepts. In English, process means process, and the so-called process is mainly composed of input, processing process, resources and output. Input becomes output through processing work and resource consumption. This understanding will be very convenient for us to decompose process elements and give different performance indicators. Of course, the process can be broken down into more elements, but the above four elements are the key elements we need to analyze

2. Select appropriate methods and indicators for scientific statistics

in fact, those who have studied probability statistics know that counting an indicator is definitely not as simple as adding, subtracting, multiplying, and dividing. There are many practical problems that need to be considered. The author believes that for process management, it is particularly necessary to pay attention to the selection of statistical methods and indicators, hoping to form a set of standard operating methods to guide relevant work. Statistical analysis in the process is in line with the needs of process management, because it has dynamic, accurate and systematic characteristics, and can truly reflect the actual situation of enterprise operation

first of all, let's take a look at the disadvantages of traditional performance analysis. Under the traditional analysis method, enterprise managers often pay too much attention to the process output results, but do not pay attention to the input of the previous process and the processing process of this process. For example, the production manager takes the simple AQL as the analysis index, and ignores the factors such as the loss of materials in the production process and the impact of superior input on the output quality. Although the high AQL value is obtained, there is a huge waste in the production process, which often outweighs the gain. Therefore, the author believes that the performance evaluation method should not only be limited to the output results, but also be based on the output process, resulting in the performance evaluation method based on the process

in fact, for supply chain management, only the relevant collaborators unite to make joint efforts to improve can produce great collaborative power, and this improvement is more prominent in the process. Through process based performance analysis, we can efficiently find the key points of process improvement and make joint efforts

suppose there is such a simple process: from receiving warehouse materials to producing parts, then final assembly, and finally delivery. It can be analyzed in this way and divided into three paragraphs: part production, general assembly and delivery. Then in each paragraph, we can simply give three evaluation indicators: import indicators, processing indicators and input indicators in combination with the four elements of input, resources, processing and output (but import indicators, processing indicators and input indicators are only general terms for process elements, not just for production processes)

(1) part production

due to the high degree of process automation of part production, the equipment capacity utilization efficiency can be taken as the processing index ((design production capacity - planned loss - unplanned loss)/(design production capacity - planned loss) = equipment capacity utilization efficiency =66%), while the qualification rate of output parts is taken as the output index (part qualification rate =90%), and the qualification rate of input materials is taken as the import index (incoming material quality) × The supplier's on-time delivery rate =77 will produce a shorter average fiber length%, which can be obtained: 66% × 96% × 87% =46%, as the overall efficiency of this process section

(2) general assembly (whole machine production)

due to the low degree of automation of the process of general assembly, the use efficiency of labor hours can be taken as the processing index (labor hour use efficiency =68%), while the qualification rate of the output whole machine can be taken as the output index (whole machine qualification rate =90%), and the qualification rate of input materials can be taken as the input index (parts are qualified, but genomatica company can flexibly use various raw material rates =90%). You can get: 68% × 90% × 90% =55%, as the overall efficiency of this process section

(3) delivery

the procedure of delivery does not consider the general storage consumption, because mechanical products rarely have storage consumption, and there is no need to consider the input quality, because the output index has considered the output quality of the whole machine. The on-time delivery rate can be considered as the output index (the output quality of the whole machine × On time, it is enough to protect the environment. The delivery rate =87%. Taking the manual packing efficiency as the processing process index (manual packing efficiency =80%), you can get: 80% × 87% =70%, as the overall efficiency of this process section

multiply the efficiency of these three paragraphs as a whole (46% × 55% × 70% =18%) and the overall efficiency from feeding to delivery is 18%. But we can notice a problem. It is meaningless to look at the indicators in isolation, so we need to combine the three paragraphs. From this, we can find that the bottleneck leading to the performance result of 18% is in the first paragraph, that is, "parts production". As China's biofuel granulator industry is emerging, we continue to decompose the efficiency of "parts production" and get:

in this way, we can clearly see that in the section of parts production, the processing efficiency is the lowest. Then we continue to analyze that the reason for the lowest processing efficiency is that the unplanned capacity consumption is relatively serious, so we can start to make relevant improvements

the performance evaluation obtained by such cumulative calculation has the consistency of the process. The output of the previous process directly affects the input of the next process. The overall performance can be analyzed, and the statistical method is to multiply rather than average after adding. Therefore, there has been no specific regulation on whether the number of evaluation indicators must be maintained

theoretically, assuming that every enterprise can achieve such analysis, the enterprises that "lag behind" in the supply chain can be easily found, and the key improvement points can be found within these enterprises, which is of great significance to the improvement of the operation performance of the whole supply chain system

3. Systematically analyze the performance evaluation results

although a scientific evaluation result can be obtained, the indicators do not have absolute significance and must be viewed in the whole system. As mentioned above, we have obtained the overall level of 18% from feeding to delivery, but the value of 18% does not make any sense independently. Only taking it as a part of the overall process of the supply chain can it have practical evaluation significance. It cannot be said that the efficiency of 18% seems to be very low and must be improved. This is a place that should be paid special attention to. When 18% of the indicators are substituted into the performance of all processes, relevant conclusions can be drawn by comparison. For example, when comparing the three values of 18%, 22% and 7% corresponding to different processes, it is found that 7% is the key bottleneck, rather than looking at a certain value in isolation, which requires comparative analysis. (end)

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