Chicago Management Institute, UAE is committed to helping you with your CCCM® Examination through its preparatory programs conducted in Dubai and Sharjah. Here is an article about Performance measuring that finds its use in various fields, and in CCCM program.

Meaningful and useful performance measures can be used to improve efficiency and effectiveness. The performance measurement itself is not a decision, however it can help you make important decisions.

We will discuss 2 major Performance measures - financial and Inveotry measures

Financial Performance Measures
Finanical measures are used to asess the finanicals.

• Return on Investment ( ROI) :Ratio , indicates the net gain divided by total cost. Number Greater than 1 is sought
• Net Present value ( NPV)
• Inernal Rae of Return ( IRR) : Number , The higher the more beneficial
• Payback Period : Number, Defines how soon the investment will pay back. Shortest is the most beneficial
  

Inventory Management Performance measures

Used to measure the peformace of Supply chain, ordering and invenotry management.

• Item fill Rate, Line Item Fill Rate and Order Fill rate: Ratios of the shipment vs order received. 1 means 100% order fullfillment, 0 Means no orders fulfilled.
• On timer delivery Percentage : Measuring the percentage of Deliveries made in time
• Order Entry Lead time : Time take to book the order
• Order Entry Accuracy : Measure error and Accuracy rate
• Inventory Turnover : Indicating how quickly the inventory is sold. a large number means sitting on inventory for long time. A smaller number shows efficiency.

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