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Unit 16 Logistics Performance Evaluation

Unit 16 Logistics Performance Evaluation
Unit 16 Logistics Performance Evaluation

Unit Sixteen Logistics Performance Evaluation

Part One Text

Logistics Performance Evaluation

What is Performance Evaluation System for Logistics Activities?

Performance evaluation (performance assessment or measurement), can be thought of as the process of empirically evaluating the actions of a business system⒈Here it is defined as an assignment process where numbers are assigned to represent some attribute of an object or event of interest for those responsible for deciding the fate of a business entity. Performance measurement evaluates ongoing business operations via objective and quantifiable values suitable for comparison, both internal and external to the firm⒉ Process view is one of the key elements in logistics and supply chain management.

Performance measurement describes the feedback or information of activities with respect to meeting customer expectations and strategic objectives⒊Performance measures are used to measure and improve the efficiency and the quality of the business processes and identify opportunities for progressive improvements in process performance.

Logistics measurement systems have been designed to capture information regarding five types of performance (asset management, cost, customer service, productivity and logistics quality). Several measures from each performance category are generally put in place to monitor and manage a variety of logistics functions including transportation, warehousing, inventory management, order processing and administration. For example, typical transportation performance measures in category type are as follows:

(1) Asset management: Capacity utilization, return on investment

(2) Cost: Cost per hundredweight, transportation cost per unit

(3) Customer service: Average transit time, transit time variability

(4) Productivity: Orders delivered per vehicle, full versus partial loads

(5) Quality: Damage in transit, documentation accuracy

Evaluation Method of Performance Measurement for Logistics Activities The domestic and international scholars have brought up about many kinds of evaluation method. The following are several kinds of methods that can be adopted in performance evaluation for logistics activities.

1. AHP Method

The AHP is a kind of multi-hierarchy weighted analytic method which was developed by U.S.A. famous operations researchers T.L.Saaty in 1970s. The AHP is a theory of measurement for dealing with quantifiable and intangible criteria that has been applied to numerous areas, such as decision theory and conflict resolution⒋AHP is a problem solving framework and a systematic procedure for representing the elements of any problem. AHP is based on the following three principles: decomposition, comparative judgments and synthesis of priorities.

AHP starts by decomposing a complex, multi-criteria problem into a hierarchy where each level consists of a few manageable elements which are then decomposed into another set of elements. The second step is to use a measurement methodology to establish priorities among the elements within each level of the hierarchy. The third step in using AHP is to synthesize the priorities of the elements to establish the overall priorities for the decision alternatives.

AHP differs from conventional decision analysis methodologies by not requiring decision-makers to make numerical guesses as subjective judgments are easily included in the process and the judgments can be made entirely in a verbal mode. It needs less necessary data so that it can overcome the general evaluation methods which require more samples and data, thus making the quantitative analysis among the systematic factors become possible⒌The main respect that AHP studies at present is calculating and two kinds of fuzzy AHP of its weight.

2. Mathematic Statistics Method

Mathematic statistics method includes Principal Component Analysis, Factor Analysis and Cluster Analysis, etc. It is not an objective method based on expert’s judgment, so it can avoid the influence of the human factor in the course, and it can be used to evaluate the target system which has compact relative relationship. But the evaluation result is only effective to the decision making and ranking, not reflecting the true importance degree of the goal in reality. Its application demands that every factor of the evaluation target should have concrete data⒍.

3. Fuzzy Comprehensive Evaluation (FCE)

For the complicated target, it is often very difficult for estimator to give a quantitative result directly. The fuzzy comprehensive evaluation has expressed the repairing of information by natural language, and has dealt with information by way of calculating, thus offering a kind of unified expression pretreatment mode to the qualitative information and quantitative information. Because of the solid mathematics foundation and good structure of the technological system, it is used extensively. At present, it is mainly applied to qualitative objective evaluation and the method perfection of itself.

4. Data Envelopment Analysis

DEA is a linear programming-based technique that converts multiple input and output measures into a single comprehensive measure of productivity efficiency (Epstein and Henderson, 1989)⒎It was developed by Charnes A. and the Cooper W. W. It is a nonparametric method for economic quantitative analysis. DEA provides a measure by which one firm or department can compare its performance, in relative terms, with other homogeneous firms or departments. In measuring the relative efficiencies of organizations, the DEA measurement can be defined as the ratio of total weighted output to total weighted input. With DEA each organization can utilize different weights for the set of performance measures. Weights are selected that will maximize the composite efficiency score for each functional unit. This variable weighting allows for the evaluation of performance while taking into account differences in goals, responsibilities, and type of procurement⒏The range of possible weights is controlled by requiring all weights to be positive, and specifying

that if another unit used the same weight, their total efficiency score could not exceed the value of one. This ensures that all firms are evaluated on the basis of relative efficiency. The technique also gives information as to the specific effect each input or output has on overall efficiency as yet, which has demonstrated its use as a potential evaluation tool for logistics performance. In summary, DEA is a tool that can be used to reduce some of the existing problems with performance evaluation system.

5. Rough Sets

Rough sets approach was developed by Z.Pawlak, the mathematician of the Poland, who brought up the theory in 1982. It has very strong qualitative analysis ability, and it needn’t give some characteristics or attributes of mathematic description in advance such as membership grade and membership function in fuzzy sets, but it can direct from the description of settled problem confirm the realm by the relations that can distinguish or not. Because this characteristic is similar to the person’s perception, the rough sets theory has quickly become the hot topic of research and application in recent years. Rough evaluation theories have focused on rough sets and other indeterminate calculation, so as to achieve the purpose to evaluate more effectively⒐

6. Benchmark of analysis (Benchmarking)

Benchmarking analysis (Benchmarking) is comparing the activities of the enterprises with those of the best in this field to promote operation and make up for their deficiencies⒑Benchmarking requires that the company must continue to assess products, services, and performance of its competitors or first-class enterprises so as to find strengths and weaknesses of its own. Overall, the benchmark of analysis (Benchmarking) is to provide a measurement reference to all that of the enterprises Benchmarking can be a management system, a learning process, it also can focus on the process of research and analysis.

Philip. Kotler explained, ―The gap in quality, speed and cost performance between an ordinary company and a world-class company will be as high as 10 times. Benchmarking is an art to excel other companies in implementation of any activities.‖

A method of Benchmarking is to divide the operation of the company into three categories, namely, the strategic, operational and managerial Benchmarking. Strategic Benchmarking is to study the company’s strateg ies to find the key and successful ones. Operational Benchmarking focuses on the costs and product differences. Managerial Benchmarking specifically refers to human resources management, marketing planning, and management information systems (MIS). Its characteristics are more difficult to use quantitative indicators to measure.

Another kind of classification Benchmarking will be done between the competitors and first-class enterprises. The former is generally limited to the companies of similar products or similar services, its main purpose is to discover the strengths and weaknesses of the competitors. The latter will be of a much wider scope.

Generally speaking, Benchmarking covers the fields including design, research and development, procurement, manufacturing, warehousing, transportation, sales, marketing, human resources, finance, management (planning, organization)….

Benchmarking starts with selecting a target from competitors or leading companies. Analyze collected data, including the situation of the enterprises and the Benchmarking enterprises (may be a competitor, can also be non-competitors). Analysis of data must be based on fu ll understanding of the Company’s recent situation and the data must be mainly for management processes and activities not just for results. Eventually, find ways or plans to improve the efficiency of the company.

7. Balanced Scorecard (Balanced Scoreboard),

Balanced Scorecard came from Robert. Kaplan and David. Norton in 1992. It is performance-driven model which is different from traditional accounting measurement model. The traditional accounting measurement model can only measure matters occurred in the past (backward Results factors), but not forward assessment of the investment companies.

Therefore, four indicators are applied to evaluate the performance of the company. They are: financial (Financial), customer (Customer), internal processes (Internal Business Processes), learning and growth (Learning and Growth). Financial indicators usually include profits, income, return on assets and so on. Consumer indicators include: time delivery rate, the sales of new products, customer satisfaction index, customer loyalty and other indicators. Six ―R‖s are required-Right Product, Right Time, Right Quantity, Right Quality, Right Status and Right Place⒒. Internal Business Processes focus on operational procedures. The key is to identify the advantages of the company itself. Learning and Growth is to produce new products, improve operational efficiency, and so on.

The principle to set KPI (Key Performance Indicator) is SMART⒓.

S— Specific; not vague or general

M—Measurable; Quantifiable

A—Attainable;

R—Realistic;

T—Time bound

The significance of logistics performance evaluation

Every evaluation method for logistics performance has its own features and the above methods are not systematized as a whole. The objects, contents and methods are too much complicated to be integrated⒔.

With the globalization of economy, the intensification of business competition and overall maturation of business operations logistics activities become more and more important for a firm⒕. It is necessary to establish logistics performance as a critical element in a company’s success. As logistics gains strategic interest, the ca ll to measure and evaluation logistics performance escalates. In 1985, A. T. Kearney has pointed that the enterprise which has done proper performance evaluation will increase 14 to 22 percent of its overall efficiency. The right evaluation of logistics performance will help the enterprise to mold the behaviors of not only the managers charged with the responsibility of developing competitive and operating strategies but also the workers who must implement the strategies⒖.

Words and Expressions:

adopt [ ?'d?pt ] v. take over (an idea ect.) from others 采用(别人的主意等) alternative [?:l't?:n?tiv ] adj. (of one or more things) available or usable instead of

another (指一个或多个东西)可相互替代使用的

n. any of two or more possibilities; the freedom or

opportunity to choose 替换物,取舍;选择的自由或余地assessment [ ?'sesm?nt ] n. the act of judging or estimating the size or quality of a

situation or event估价,评估

attribute [ ?'tribju:t ] n. an abstraction belonging to or characteristic of an entity

属性,特征

v. ( foll. by to) 后接介词to

①regard as the effect of (a stated cause) 归因于,归咎于

②regard as characteristic of, possessing or having 认为

属于…的特点

compact [ 'k?mp?kt ] adj. closely or neatly packed together 紧凑的,紧密的,简洁

的n. agreement or contract between two or more parties

合约,条约

decomposition [ .di:k?mp?'zi??n ] n. decaying; disintegrating 分解,腐败,变质efficiency [ i'fi??nsi ] n. productivity with minimum waste or effort 效率empirical [ im'pirikl ] adj. based or acting on observation or experiment, not on

theory 实践的,经验的,非理论的

empirically [ im'pirikli ] adv. with experience 经验主义地

entity[ 'entiti ] n. that which is perceived or known or inferred to have its own

distinct existence (living or nonliving) 存在,实体

essential [ i'sen??l ] n. (esp. in pl.) a basic or indispensable element or thing (尤用

复数)必备品,必需品

adj. absolutely necessary; vitally necessary必要的,重要的,本质的

evaluation[ i.v?lju'ei??n ] n. the act of judging or assessing a person or situation or

event 估价,评价

expectation [ .ekspek'tei??n ] n. belief about (or mental picture of) the future期待,

期望

external[ eks't?:nl ] adj. of or situated on the outside or visible part 外部的,表面的feedback[ 'fi:db?k ] n. response to an inquiry or experiment 反馈

hierarchy [ 'hai?rɑ:ki ] n. a system in which grades or classes of status or authority

are ranked one above the other 等级制度,层级[计] homogeneous [ .h?m?u'd?i:nj?s ] adj. of the same kind; uniform 同种的;均质的identify [ ai'dentifai ] v. establish the identity of; recognize 识别,认明,鉴定implement [ 'implim?nt ] vt. put … into effect; fulfil 实现,执行,使...生效indeterminate [ .indi't?:minit ] adj. not fixed in extent, character, etc. (范围,

性质等)不确定的

intangible [ in't?nd??bl ] adj. unable to be touched, not solid 难以明了的,无形的internal[ in't?:nl ] adj. of or situated in the inside or invisible part 国内的,内部的linear [ 'lini? ] adj. of or in lines; in lines rather than masses 线的,直线的,线状的

maturation [ .m?tju'rei??n ] n. the state of being maturing 成熟,圆熟nonparametric [ 'n?np?r?'metrik ] adj. not involving an estimation of the

parameters of a statistic 非参数的(非参量性

的)

numerical [ nju(:)'merik?l ] adj. of or relating to a number or numbers 数字的,

以数字表示的

objective[ ?b'd?ektiv ] n. the goal intended to be attained (and which is believed to be

attainable) 目标,目的

ongoing[ '?ng?ui? ] adj. currently happening 前进的,进行的

pretreatment [ 'pri:.tri:tm?nt ] n. treatment beforehand 预先处理(粗加工,预清理) priority [ prai'?riti ] n. status established in order of importance or urgency

优先权,优先顺序,优先

procurement[ pr?'kju?m?nt ] n. obtaining, esp. by care or effort; acquisition

(尤指通过努力)取得;获得(征购) productivity [ .pr?d?k'tiviti ] n. the quality of being productive or having the power to

produce生产率,生产能力

progressive [ pr?'gresiv ] adj. moving forward 进步的,前进的

qualitative [ 'kw?lit?tiv ] adj. concerning with or depending on quality

性质上的,质的,定性的

quantifiable [ 'kw?ntifai?bl ] adj. capable of being quantified 可以计量的represent [ .ri:pri'zent ] vt. be representative or typical for表现,表示,描绘,代表strategic[ str?'ti:d?ik ] adj. important or useful with regard to strategy 战略的

异体字:strategical ad. strategically

synthesize [ 'sinθisaiz ]v. combine so as to form a more complex product 合成

vi. take the place of or be parallel or equivalent to提出异议via[ 'vai?, 'vi:? ] prep. by way of; through 经由

to base…….. on………:to use sth as grounds, evidence, etc for sth else 以某事物

为另一事物的根据,证据等;基于,作为...的基础

to bring up : call attention to 使注意

to covert …….into….. : to change/turn…….into……. 把...转变成

o take ……into a ccount(consideration) 考虑(注意,顾及,体谅)

to think of…as: to regard …as; to consider …as 把...看作

with respect to……….. regarding; about 关于,至于Special Terms:

AHP(Analytical Hierarchy Process)method 层次分析法

asset management 资产管理

BSC (Balanced Scorecard) 平衡记分卡

capacity utilization 产能/设备利用率

Cluster Analysis 聚类分析

customer service 客户服务

DEA (Data Envelopment Analysis ) 数据包络分析

documentation accuracy 文件的准确性

Factor Analysis 因子分析

FCE(Fuzzy Comprehensive Evaluation) 模糊综合评价

hundredweight 英担(衡量名,在英国等于112磅,在美

国等于100磅)

KPI (Key Performance Indicator) 关键绩效指标

logistics performance evaluation 物流绩效评估

Principal Component Analysis 主成分分析

return on investment 投资回报率

Rough Sets 粗糙集

transit time variability 运输期限

Notes to the Text:

1. Here it is defined as an assignment process where numbers are assigned to represent some attribute of an object or event of interest for those responsible for deciding the fate of a business entity. 在这里物流绩效评估被界定为一项指定过程,它通过数据向那些决定一个商业实体命运的人展示事物或相关事件的属性和特点。

Here, ―where numbers are assigned to represent some attribute of an object or event of interest for those responsible for deciding the fate of a business entity‖ is an attributive clause. The proceeding word is an assignment process。“Attribute to‖means “归于, 属于‖. For example:

They attribute their success to their teacher’s help.他们把成功归功于老师的帮助。

2. Performance measurement evaluates ongoing business operations via objective and quantifiable values suitable for comparison, both internal and external to the firm. 物流绩效评估通过可比较的客观的和可量化的指标,对公司内部和外部的商业运作活动进行评估。

3. Performance measurement describes the feedback or information of activities with respect to meeting customer expectations and strategic objectives. 物流绩效评估就满足客户的期望和战略目标方面提供商业活动的信息和反馈意见。

Here, ―With respect to‖ means ―关于‖ . For example:

With respect to your enquiry, I enclose an explanatory leaflet. 关于你的询问, 兹附上有关说明资料.

4. The AHP is a kind of multi-hierarchy weighted analytic method which was developed by U.S.A. famous operations researchers T.L.Saaty in 1970s. The AHP is a theory of measurement for dealing with quantifiable and intangible criteria that has been applied to numerous areas, such as decision theory and conflict resolution. 层次分析法是一种多层次的加权分析方法,这是由美国著名的管理研究者T.L.Saaty

在20世纪70年代提出的。AHP是一种评估理论,用于测量处理量化的和无形的准则,已应用于许多领域,如决策理论和解决冲突。

5. It needs less necessary data so that it can overcome the general evaluation methods which require more samples and data, thus making the quantitative analysis among the systematic factors become possible. 它需要较少的必要数据,因此它能够克服一般的评价方法需要更多的样本和数据的缺点,从而使系统性因素之间的定量分析成为可能。

6. But the evaluation result is only effective to the decision making and ranking, not reflecting the true importance degree of the goal in reality. Its application demands that every factor of the evaluation target should have concrete data. 但评价结果对于决策和排名是有效的,并反映不出现实目标的重要程度。所以其应用要求评价指标的每一个因素都应该有具体的数据。

7. DEA is a linear programming-based technique that converts multiple input and output measures into a single comprehensive measure of productivity efficiency. 数据包络分析是以线性规划为基础的技术,可以把多个输入和输出的指标转化成为单一衡量生产效率的指标。

Here, ―convert into‖ means ―转变、改成‖. For example:

The old barn we bought to convert into flats was practically tumbling down.那个我们买下旧谷仓想改建住房的, 它实际上已经快塌了。

8. This variable weighting allows for the evaluation of performance while taking into account differences in goals, responsibilities, and type of procurement. 这个可变组成指数使绩效评估得以进行,同时又考虑到不同的目标,责任和类型的采购。

Here, ―take into account‖ means ―考虑在内‖. For example:

We should take into account the proposals of our parents and vice versa. 我们应该考虑父母的建议, 反之亦然。

9. Rough evaluation theories have focused on rough sets and other indeterminate calculation, so as to achieve the purpose to evaluate more effectively. 粗略的评价理论,侧重于粗糙集和其他不确定的计算,从而更有效的达到评价目的。

10. Benchmarking analysis (Benchmarking) is comparing the activities of the enterprises with those of the best in this field to promote operation and make up for their deficiencies. 基准化分析法就是将本公司各项活动与从事该活动最佳者进行比较,从而提出行动方法,弥补自身的不足。

11. Six ―R‖s are required-Right Product, Right Time, Right Quantity, Right Quality, Right Status and Right Place. 要作到六个“R”,即将客户所需的正确的产品在正确的时间,按照正确的数量,正确的质量和正确的状态送到正确的地点。

12. The principle to set KPI (Key Performance Indicator) is SMART.

S— Specific; not vague or general

M—Measurable; Quantifiable

A—Attainable;

R—Realistic;

T—Time bound

确定关键绩效指标有一个SMART原则,S代表具体,不能笼统;M代表可度量,是数量化或行为化的;A代表可实现,避免设立过高或过低的目标;R代表现实性,指标要实实在在;T代表完成指标的特定时限。

13. The objects, contents and methods are too much complicated to be integrated. 对象,内容和方法太复杂而无法合成为一种方法。

14. With the globalization of economy, the intensification of business competition and overall maturation of business operations logistics activities become more and more important for a firm.随着经济全球化,激烈的商业竞争和整体商业运作的成熟,物流活动对一个公司来说变得越来越重要。

15. The right evaluation of logistics performance will help the enterprise to mold the behaviors of not only the managers charged with the responsibility of developing competitive and operating strategies but also the workers who must implement the strategies. 正确评价物流绩效将有助于企业塑造员工行为,不仅仅是制定公司竞争和运行策略的管理者的行为,更包括执行策略的普通员工的行为。

Exercises

ⅠAnswering the following questions:

1. What is Performance Evaluation System for Logistics Activities?

2. What are the five essential types of performance of a company?

3. How many methods are mentioned in the text?

4. What is AHP method?

5. What does Mathematic Statistic Method include?

6. What’s FCE?

7. What is DEA?

8. What is the advantage of Rough Sets?

9. What is Benchmarking?

10. Why is it necessary to evaluate the logistics activities?

Ⅱ Complete the following sentence with the words and phrases from the text in their proper forms.

1. In software product________, the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

2. The workers are trying their best to increase_________.

3. The government is __________a new policy to help the unemployed.

4. They ________ their success to their teacher's encouragement.

5. This is a highly _________ new heating system.

6. The study of fingerprints as a method of_________.

7. I think we should work out a ________ to deal with this situation.

8. We should ________ the consumers' suggestion.

9. This news program only covers _________events.

10. All our _______ were gained.

11. We have no________, but to do it.

12. Rebuilding the area is a (top) __________.

13. They ________ the number of visitors at 10 million.

14. In considering this problem, you should grasp its__________.

15. Meanwhile, you are allowed to ________ your thoughts and opinions regularly to develop our program and the club.

Ⅲ Fill in the blanks with the words or phrases or terms given below .Change the forms if necessary.

In this technical business world, the process of management decision-making has grown 1 . There is, however, a limit to the number of decisions that can be made by one person. There are 2 opinions about the number of people that one person can manage directly in an 3 way; but, for higher executives, it is generally agreed that the 4 number should be eight.

People 5 in groups in order to achieve objectives that they can’t achieve by working 6 . In an efficiently-run company, the activities of the various groups and the responsibilities of the individuals who work within them must be carefully defined 7 an organization structure. For management, the purpose of this organization is the 8 of company policy.

A company organization structure should 9 at providing an efficient work system, a means of communication, and satisfaction for company 10 .

First, in terms of efficiency, a business must try to 11 most products. This is possible only when the company organization functions 12 . Second, the success of a company depends on a 13 flow of full and correct information. Therefore, an 14 communication system must exist to ensure that the right information reaches the right people. Finally, a well-defined organization provides the means for individuals to 15 their relations with others who work for the same company. This is the basis for job satisfaction.

Ⅳ. Translate the following into Chinese.

1. Key performance indicators in the logistics industry can be used for not just assessing performance but as a tool for improvement and key decision making. Logistics KPIs refer to those management metrics that are used to measure the performance of a logistical system. KPIs for logistics will differ based on the goals of a logistical system at a certain point of time, and these KPIs will also vary for logistics departments or companies working in different industries.

2. Monitoring relevant KPIs can help logistical managers in a number of ways. KPIs can easily guide the managers towards areas where more effort or resources need to be concentrated. Apart from this, key performance metrics let the managers compare the performance of their own firms with already existing industry benchmarks, giving a clear idea of how high or low the companies stand vis-à-vis others engaged in the same field. A logistics KPI study will also let them know about the problem areas in the companies.

V. Translate the Following paragraphs into English

1. 近几年, 各类物流企业如雨后春笋地出现, 这种现象产生的原因在于越来越多企业的管理者认识到物流在降低产品成本、增加利润、提升企业竞争力等方面发挥着重要作用。物流企业要想得到发展, 必须对物流活动进行绩效评价和分析, 这样才能准确判断企业的实际经营水平, 提高企业的经营能力, 进而增加企业的整体效益。

2. 企业之间的竞争在现在已不是产品意义上的竞争, 而是整条供应链的竞争。供应链管理环境下的物流绩效的概念基于平衡记分卡理论, 从财务、客户服务、内部流程、学习与发展基础四方面构建物流绩效评价指标体系。

Ⅵ. Write a 150-word composition according to the topic given below.

The Significance of Logistic Performance Evaluation

VII. Reading Comprehension:

Passage one

Industrial production managers coordinate the resources and activities to produce millions of goods every year in the United Sates. Although their duties vary from plant to plant, industrial production managers share many of the same major responsibilities. These responsibilities include production scheduling, staffing, procurement and maintenance of equipment, quality control, inventory control, and the coordination of production activities with those of other departments.

The primary mission of industrial production managers is planning the production schedule within budgetary limitations and time constraints. They do this by analyzing the plant's personnel and capital resources to select the best way of meeting the production quota. Industrial production managers determine, often using mathematical formulas, which machines will be used, whether new machines need to be purchased, whether overtime or extra shifts are necessary, and what the sequence of production will be. They monitor the production run to make sure that Ft stays on schedule and correct any problems that may arise.

Industrial production managers also must monitor product standards. When quality drops below the established standard, they must determine why standards are not being maintained and how to improve the product. If the problem relates to the quality of work performed in the plant, the manager may implement better training programs, reorganize the manufacturing process, or institute employee suggestion or involvement programs. If the cause is substandard materials, the manager works with the purchasing department to improve the quality of the product's components.

Because the work of many departments is interrelated, managers work closely with heads of other departments such as sales, procurement, and logistics to plan and implement company goals, policies, and procedures. For example, the production manager works with the procurement department to ensure that plant inventories are maintained at their optimal level. This is vital to a firm's operation because maintaining the inventory of materials necessary for production ties up the firm's

financial resources, yet insufficient quantities cause delays in production. A breakdown in communications between the production manager and the purchasing department can cause slowdown and a failure to meet production schedules. Just-in-time production techniques have reduced inventory levels, making constant communication among the manager, suppliers, and purchasing departments even more important. Computers play an integral Part in this coordination. They also are used to provide up-to-date information on inventory, the status of work in progress, and quality standards.

Production managers usually report to the plant manager or the vice president for manufacturing, and may act as liaison between executives and first-time supervisors. In many plants, one production manager is responsible for all aspects of production. In large plants with several operations-there are managers in charge of each operation, such as machining, assembly, or finishing.

Choose the best answer

1. The passage is mainly about __________.

A. the procedures for industrial production

B. the ways to raise working efficiency and productivity

C. the importance of coordination in production activities

D. the role of an industrial production manager

2. To meet the production quota, it is of vital importance that __________.

A. every machine be utilized to its fullest capability

B. problems be corrected at once whenever they arise

C. work shifts be arranged to yield the highest productivity

D. the optimal staffing and budgeting arrangement be made

3. Which of the following aspects is the focus of the fourth paragraph?

A. Quality control.

B. Inventory control.

C. Coordination of production activities.

D. The necessity to obtain the latest information.

4. The procurement department is in charge of __________.

A. purchasing the production materials

B. distributing the inventories in stock

C. controlling the inventories in stock

D. making constant communication with other departments

5. What is the role of computers in the production process?

A. They control the techniques of production.

B. They keep each department well-informed.

C. They monitor the progress and status of work.

D. They transmit directions from the management to employees.

Passage Two

A scientist who does research in economic psychology and who wants to predict the way in which consumers will spend their money must study consumer behavior.

He must obtain data both on the resources of consumers and on the motives that tend to encourage or discourage money spending.

If an economist were asked which of the three groups buy most- people with rising incomes, stable incomes, or declining incomes- he would probably answer: those with declining incomes. Actually, in the 1990s, the answer was: people with rising incomes. People with declining incomes were next, and people with stable incomes bought the least. This shows us that traditional assumptions about earning and spending are not always reliable. Another traditional assumption is that if people who have money expect prices to go up they will hasten to buy. If they expect the prices to go down, they will postpone buying. But research surveys have shown that this is not always true. The expectations of price increases may not stimulate buying. One typical attitude was expressed by a housewife. ―In a few months,‖she said, ―we’ll have to pay more for meat and milk, we’ll have less to spend on other things.‖Her family had been planning to buy a new car but they postponed this purchase. Furthermore, the rise in prices that has already taken place may be resented and the buyer’s resistance may be evoked.

The investigations mentioned above were carried out in America. Investigations conducted at the same time in Great Britain, however, yielded results that were more in agreement with traditional assumptions about saving and spending patterns. The condition most conducive to spending appears to be price stability. If prices have been stable and people consider that they are reasonable, they are likely to buy. Thus, it appears that the common business policy of maintaining stable prices is based on a correct understanding of consumer psychology.

Choose the best answer

1.Which of the following is NOT necessary for a man to do, who wants to predict

the way consumers spend their money?

https://www.wendangku.net/doc/da2743936.html,paring traditional assumptions about consumption and reality.

B.Studying consumer behavior.

C.Obtaining data on consumers’ income.

D.Studying consumers’ money spending motives.

2.Who bought most traditionally?

A.People with rising incomes.

B.People with declining prices.

C.People with stable prices.

D.People who can afford the loan.

3.Research surveys have proved that rising prices may ___________.

A.stimulate purchases

B.take the place of buyers’ resistance

C.put off consumers’ purchases

D.make consumers rush to purchase necessities like meat and milk

4.Which of the following statements is TRUE?

A.The results of the investigation in Britain were identical with those in

America.

B.The consumers would like prices decline so that they can buy more things.

C.It is responsible for business to keep steady prices.

D.None of the above.

5.From the results of the surveys, the writer concludes that _________.

A. a common business policy is feasible

B.consumers expect prices to maintain stable in order to purchase

C.it is important to study consumer behavior

D.American and British consumers’ saving and spending patterns are somewhat

different

Passage Three

The management of logistical(物流的)operation is about movement and storage of materials and finished products.Logistical operations start with the initial shipment of a material or component part from a Supplier and are finished when a manufactured or processed product is delivered to a customer.

From the initial purchase of a material or component,the logistical process adds value by moving inventory (移动库存) when and where needed.If all goes well,a material gains value at each step of its transformation into finished inventory.In other words,an individual part has greater value after it is put into a machine.Likewise, the machine has greater value once it is delivered to a buyer.

To support manufacturing, work-in-process inventory must be moved to support final assembly.The cost of each component and its movement becomes part of the value-added process.The final or meaningful value that is added occurs only with final ownership transfer of products to customers when and where specified.For a large manufacturer, logistical operations may consist of thousands of movements,which finally develop into the delivery of products to an industrial user, retailer, wholesaler, dealer, or other customer.For a large retailer, logistical operations may start with gaining products for resale and may finish with consumer pickup or delivery.For a hospital.logistics starts with purchasing and ends with full support of patient surgery and recovery.The significant point is that regardless of the size and type of enterprise,logistics is essential and requires continuous management attention.For better understanding it is useful to divide logistical operations into three areas:physical distribution, manufacturing support,and procurement (筹措、采购).Choose the best answer

1. Logistical operations are concerned with .

A. transfer of materials and finished products

B. manufacturing of materials and finished products

C. inventory of materials and finished products

D. both A and C

2. The logistical process increases value by .

A. manufacturing

B. inventory flow

C. finished products

D. operational management

3. In the last paragraph,the writer gives the examples of logistical operations in order to show that .

A. a large retailer purchases products for resale

B. a consumer has to pick up or deliver products himself

C. logistics is important to an enterprise and needs continuous management

D. a large manufacturer has to deliver products to its customer

4. The paragraph following the last one in the passage will probably discuss .

A. inventory

B. manufacturing support

C. physical distribution

D. procurement

5. The main idea of the passage is about .

A. moving inventory

B. logistical operations

C. transformation of materials and finished products

D. storage of materials and finished products

Passage Four

Over the past fifteen years, information technology (IT) has become an essential part of the managerial vocabulary for a great many businesses. Today, however, telecommunications are rapidly becoming as important as the computer industry. This can be attributed to the liberalization of world markets, which has created an explosion in the development and availability of advanced communications services.

In many instances, communications systems are being used to enable companies to implement new strategies. One such strategy is the move towards more globalized business. Obviously, setting up an office overseas is not simply a matter of identifying potential markets. Logistics(后勤), such as establishing links for the vital flows of information between a company’s head office and its overseas subsidiaries and suppliers, are equally important. Not surprisingly, sophisticated communications systems play a fundamental role in connecting business operations.

One such system is the Integrated Digital Services Network (ISDN), which enables companies to send and receive high speed data, fax transmissions and ordinary voice calls, as well as images for video-conferences, over international digital telephone networks. The network also enables businesses to offer their services on a worldwide scale. One such offering is the new International Dealer link. This is a voice -only, private circuit service jointly offered by British Telecom and France Telecom. It can meet the special communications needs of the finance community by providing a fast and cost-effective link between the two financial centers. The service also opened between the UK and the Netherlands at the end of January.

Choose the correct answer

1. The best title for this passage would be ______.

A) Computer Industry B) World Markets

C) International Dealer link D) High-Tech Communications

2. Rapid development in advanced communications has resulted from _____.

A) liberalization of world markets B) implementation of new strategies

C) identification of potential markets D) connection of business operations

3. What does ―such system‖ (Line 1, Para. 3) refer to ______?

A) connecting business operations B) sophisticated communications system

C) playing a fundamental role D) logistics

4. The purpose of the last paragraph is to _______.

A) describe telephone networks B) give further description

C) illustrate with an example D) introduce a new idea

5. How many countries have access to the International Dealerlink?

A) 2. B) 3. C) 4. D) 5.

Part Two Reading Passage:

Performance Measurement

Productivity in a narrow sense has been measured for several years. In 1978 an enlarged method, the POSPAK method, was introduced. This method indicates specific measures in order to improve the overall productivity of an enterprise (Sjborg, 1984). One of the first approaches to performance measurement was published by Sink and Tuttle (Sink, 1985, Sink and Tuttle, 1989). The model claimed that the performance of an organizational system is a complex interrelationship between seven criteria. In 1993 Hronec published the book ―Vital Signs‖, where he described how to use quality, time, and cost performance measurements to chart the company’s future. In 1995 Rolstad?s edited the book ―Performance Management‖. It sought to provide the reader with a detailed overview of the modern enterprise by focusing on performance evaluation and measurement and performance improvement techniques. Since 1995 a number of books and papers on performance measurement and management have been published.

One example of a performance measurement system is the TOPP system, which was developed by SINTEF (Moseng, 1996) in Norway in partnership with the Norwegian Institute of Technology (NTH), the Norwegian Federation of Engineering Industries (TBL), and 56 participating enterprises. The TOPP system views performance along three dimensions (Moseng and Bredrup, 1993). These are in illustrated Figure 1.

Efficiency

Effectiveness

Figure 1 Performance measurement (Moseng and Bredrup, 1993)

1. Effectiveness - satisfaction of customer needs.

2. Efficiency - economic and optimal use of enterprise resources.

3. Changeability - strategic awareness to handle changes.

In TOPP a number of performance measures were developed based on these dimensions. One example of a recent performance measurement system is the ENAPS (European Network for Advanced Performance Studies) performance measurement system, developed in the EU financed project ENAPS. This was based on a number of performance measurement systems and recent research. The ENAPS business model is shown in Figure 2 and reflects a future view of a manufacturing enterprise as it incorporates the end of life use of products (Andersen, Rolstad?s, and Fagerhaug, 1998).

discard The cycles in the middle of the Fig.2 are: supplier, manufacturer, assembly, distributor, customer, recycler.

Based on this business model, ENAPS has suggested three levels of hierarchy for defining performance indicators. Each performance indicator is a function of two or more performance measures. The three levels of hierarchy for defining performance indicators are: ―Enterprise Level‖, ―Process Level‖ and ―Function Level‖. The performance measures used in calculating these performance indicators are measured from all over the enterprise (Andersen et al., 1998).

Performance measurement plays an important part in a performance improvement framework. The European Foundation for Quality Management – EFQM (1998) has described self-assessment as a comprehensive, systematic and regular review of an organization’s activities and results referenced against a model of business excellence. EFQM emphasize that the self-assessment process allows the organization to discern clearly its strengths and areas in which improvements can be made and culminates in planned improvement actions which are then monitored for progress. Comparison of performance measurement and self-assessment for business excellence

What is the difference between a ―traditional‖ measurement system and self-assessment? Because of the many definitions and meanings of self-assessment, this difference is not altogether evident, but some differences are (Bredrup, 1995): When to measure.In the traditional measurement system the measurement is continuous. In self-assessment the measuring is done at certain times, with an interval between the measurements.

Focus. A traditional measurement system measures in detail within one or more departments or processes. Self-assessment is, however, more focused on a somewhat superior and holistic image of the company.

Use.Data from the traditional measurement system are used in the day-to-day control and measurement of improvements. Self-assessment is, nevertheless, used in a greater degree to define more long-term focus areas for improvement and for strategic decision support.

Philosophy

Both methods focus on assessing the current state of the organization or parts of it. Both methods are aim at improving the organization.

Self-assessment for business excellence is a method that can be employed at certain intervals, for instance annually, while performance measurement is usually a continuous process. However, one performance measurement may also be used for short periods of time. An example is a group of employees in a travel agency who wants to improve their performance. By measuring key characteristics of their processes for a limited time they might learn enough to initiate minor improvement efforts.

Process or approach: Traditional performance measurement systems are more focused on the results than the processes. Imai (1986) labeled these Process-Oriented Criteria (P criteria) and Result-Oriented Criteria (R criteria). R criteria are the easiest to measure, and focus on areas that traditionally have been addressed in USA. Here we can draw a parallel to Deming (1986), who had ―Managem ent based on highly visible performance measures‖ as one of his five deadly diseases. Fellers (1992) supported Deming’s work and advocated a process view. In self-assessment for business excellence the focus is both on the results as well as the processes.

A major difference between traditional performance measurement and self-assessment for business excellence is the type of data collected and used: In performance measurement the data are mostly quantitative and focused on operational issues. In self-assessment for business excellence the data are both qualitative and quantitative, and they have a longer time perspective than those used in performance measurement.

The data collected in a traditional performance measurement system are thus of limited value in the self-assessment process. A similar conclusion is reached if one looks at the performance dimensions from Harrington (1991) and TOPP (Moseng and Bredrup, 1993) illustrated in Figure 1.

The traditional performance measurement system is mostly centered on the efficiency part of this cube, while self-assessment for business excellence has to take all dimensions into account, in addition to focus on a higher level. Many of the same

tools can be applied when using both methods, for instance tools for collection, analyzing, and presenting data.

Organizational and detailing level: Both self-assessments for business excellence and performance measurement are holistic-focused methods. Depending on how they are applied, both concepts are more or less focused on improvement.

In self-assessment employee participation is vital. This is not equally important in performance measurement, especially if the performance measurement system is implemented and fully operational.

Comparison of balanced scorecard and self-assessment for business excellence Both methods aim at assessing the current state of the organization or parts of it. The improvement focus is more evident in self-assessment than in balanced scorecard, as determining areas for improvement is a major part of self-assessment.

Process or approach: Both methods make use of a reference model, and in self-assessment a business excellence model is used. In balanced scorecard the model which is compared against consists of four areas (Kaplan and Norton, 1996).

Balanced scorecard is a continuous process, as opposed to self-assessment that can be utilized at certain intervals.

The organizations should collect data and analyze them in order to understand their own operations. The data collecting in self-assessment for business excellence consist of both qualitative as well as quantitative data. In balanced scorecard only quantitative data are collected.

Organizational and detailing level; Both self-assessment and balanced scorecard are holistic-focused methods. The main focus, however, differs. Self-assessment emphasizes improvement, while balanced scorecard is focused on status. One could label it a state-of-the-art performance measurement tool, incorporating both financial and non-financial measures. Employee participation is thus not as pivotal to balanced scorecard as it is to self-assessment.

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