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Advise the CEO how the Lynch and Cross performance pyramid can help Zones achieve its corporate
vision
intoduction of performace pyramid ensures that performance measures are introduced at diffrent levels with in
an organisation
operation level
tacticle level
strategic level
performance pyramid connects all diff level and suggest that the vision of the organistion would be achieved byu
the fulfilment of the objectives at the diff levels of organistion
at the operational level performance pyramid suggests that zones should improve its quality, delivers good on
time,reduce the cycle time of the process (delivery or any other process) it undertakes annd eliminate the
waste(through utilization of idle resources)
it further suggests the improvement of quality and deliveries enhances customer satisfaction and which in turns
helps organistion achieve its strategic objective or market related goals of enhancing its share etc..
pyramid guides the reduction in cycle time amnd waste enhances productivity which in turns enhances financial
performance leading to satisfaction of shareholder
so by the introduction of performance pyramid,the entity achieve goals at diffrent levels which helps them
achieve higher level objective and finally helps it achieving the vision.
b) Using the performance pyramid, evaluate the extent to which the suggested new measures in Appendix
2 can be used to measure and manage operational performance at Zones.
operational level measures have to be quality/delivery/cycle time and waste
no specific definition for quality and in general it means customer satisfaction
in the case of zone th eon time stop could be considered as measure of quality
vehical utilisation could be considered as a measure of waste
on time stop could be considered as measure of delivery
fuel consuption could be considered as measuring wastage
with repect to performance measures discussed an evaluation is made about the extend of benefits these
measures will provide in order to measure and manage perfotrmance of zones
vehical utilisation
vehicle are main assets
max utilisation would mean max deliveries
the capacity of each vehicle would differ
greater the load being carried by these vehicle will mean greater utilization
this will have an impact of reducing waste which is the idle capacity
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since the measure is based upon the load which is usually an indication of the capacity therefore this will
hel;porganisation improve its productivity
fuel consumption
the lower fuel consumption would make deliveries cheaper
will help reduce the price charged
this will satisfy customer and also help organisation enhance its productivity
measuring cost per kilo may not be the correct reflection of performance
delivering through different vehicle
each vehical has a different consumption
each vehical districution in a diff area
type of roads will also impact on consumption
distanc between stops will also impact consumption
this measureis good to have but need to be adapted/improves/amended to reflect differing circumstances may be
the measuring cost of fuel per parcel delivered or per kg km handled
on time stop
key factor
customer are satisfied majorly on this factor
good to have
will ensure that management focus upon it
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