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1、 Back Up Panels McKinsey Proprietary and Confidential LShop/Ldn/22Oct97Rp-fc/kf - 26 - Drivers and KPIs are however linked throughout the supply chain They form a “causal tree” along the supply chain which varies between industries and over time Function/Process Stage They do not simply drive and ex

2、plain just quality, time or cost, they may drive or explain all three We have simplified the tree in this presentation: We have left out the links and kept the model on a generic level Quality Time Cost We have not developed a “perfect” model McKinsey Proprietary and Confidential LShop/Ldn/22Oct97Rp

3、-fc/kf - 27 - These operational metrics should be used with care Ideally they should support key KPIs by explaining why performance is meeting/below expectations. They should also give an in-depth picture into how well each supply chain stage is performing. However, their use calls for judgement: Th

4、ey vary across companies and industries (which explains the large quantity of metrics available. Many are not directly linked to key KPIs but are useful secondary indicators of performance. They do not necessarily link to performance at just one stage in the supply chain (but accountability must be assigned to someone within one stage. For example: inaccurate order making could lead to more time being spent on puchasing, suppliers delivering the wrong goods and/or suppliers delivering the goods late

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