New market realities are rewarding companies that develop a "balanced scorecard." These proactive competitors are creating new measures to link work behavior to the bottom line. Result: these companies now track - and improve - customer satisfaction and financial performance on a daily basis.
This book shows managers how to structure measures to focus on activities and results in terms of cause and effect. Measurements for Effective Decision Making: A Guide for Manufacturing Companies emphasizes factors critical for success, such as operational and financial performance, impact of constraints, capital investments, product cost and product mix issues, and more. With these new "balanced scorecard" measures, you can know at any moment whether you're making money and competing effectively.
A great deal has been written and published in recent years concerning the apparent demise of the standard cost system. Although it is clear that this system is outdated, there is confusion concerning alternatives.
This book is an attempt to fill at least some of this void. It is intended to provide an alternative decision making system to the one spawned by the standard cost accounting system.
The authors' experience in implementing synchronous management techniques in a variety of environments has provided the foundation for this book. The misalignment found not only in measurement and decision making systems but also in operating methods and organizational mindset has brought about the need for the development of a self-consistent set of measures.
Topics covered in this book:
Comments on this Book:
- Old Measures Don't Serve New Market Realities
- An Introduction to Synchronous Management
- In Sync- A Balanced and Structured Set
- Customer Focus Measures
- Measures of Operational Performance
- Constraint Measures
- Activity-Outcome and Activity-Focusing Measures
- Capital Investment Decisions
- Product Cost and Product Mix Decisions
- Key Implementation Issues
"This book provides, in simple, straightforward language, a new perspective on the importance of performance measurements, a fresh look at how to drive financial performance, and some effective tools to guide decision making. It should be required reading for manufacturing and finance managers in all industries."
Michael E. Naylor, Sr. VP Operations
"The technology of Synchronous Management has provided an excellent schematic for changing American industry. Measurements for Effective Decision Making takes the discussion of synchronous performance to measures to the next level."
James R. Stanley, Sr. VP, Operations
"Measurements for Effective Decision Making frees you from the limitations of traditional measurement systems. This book provides clear, unambiguous measures that focus your thinking and priorities in the quest for continuous operational improvement and stronger financial performance."
John Douglas Whelan, President