What Is the Best Measure for Your Organization

Numerous effective measures of supply chain performance exist, but the best focus on (1) cycle time, which offers inventory reductions and capacity increases, (2) on-time performance to customer expectations, and (3) quality, which is the foundational building block of a satisfied customer base. 

Other measures can be seen in Chart 4.1. But the most important criterion for an effective measurement system in any supply chain environment is that it focus on motivating the correct response from the employee base. When we consider Lean management principles in the next section, we will find another collection of measures that are valuable in optimizing a supply chain. But the measure that will fit your organization the best depends on  

The response that employees or suppliers will have to the measure 

You start by looking at these criteria for a measurement system, and then you attempt to identify as few measures as possible that will drive everyone s 

Reinventing Lean - Introducing Lean Management into the Supply Chain 

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