Question

Summarize the measurement and knowledge management practices for performance excellence, and explain the importance of performance measurement in organizations who work directly with suppliers. How do they measure performance? What important factors come into play when implementing management practices?

Answer 1

In order for the performance to drive the working of the organization, we need to be able to make sure that there are proper functions, processes, as well as data being utilized in order to perform the most efficient functions, is being followed. We can say that being able to select the element of how knowledge is gained and shared within the organization enables it to perform the required functions.

The best possible function a management can perform in such an organization is that of performance and knowledge management. The management needs to make sure that the knowledge and the data are being used optimally in order to minimize any loss of productivity and this becomes the reason we see why some companies perform better than others. Performance measurement gives the management the required values in terms of metrics allowing them to analyze the system being followed and how it affects the overall functionality and thus, is critical for evaluation purpose of the entire element of functionality.

Especially for organizations that need to work directly with their suppliers, it becomes necessary to evaluate their processes and their factor of functioning effectively. The procurement of raw materials, reordering of inventory and the maintenance of optimal production level is dependant on the company's ability to maintain its processes efficiently. If the company under or over-utilizes the element of inventory, there is a loss of production and therefore the factor of output is affected as a direct result.

The factors that come to play when implementing management practices include:-

1. The skill set of the employees in the given company.

2. The culture that is dominant and how the entire company is affected by it.

3. The ability of a company to maintain its core processes without disrupting the functionality,

4. The scope of implementation as well as the vision of the company.

5. Capital requirement and budgetary constraints.