Unit 16 Logistics Performance EvaluationWord文档格式.docx

1、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 system Here it is defined as an assignment process where numbers are assigned to represe

2、nt 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 firm Process view is on

3、e 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 objectives Performance measures are used to measure and improve the efficiency and the quality of the

4、 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 measu

5、res 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 foll

6、ows:（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 transi

7、t, documentation accuracyEvaluation Method of Performance Measurement for Logistics ActivitiesThe 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 activiti

8、es.1. AHP MethodThe 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 deci

9、sion theory and conflict resolution AHP 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

10、-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

11、 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 a

12、nd 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 possible The main respect that AHP studies at pre

13、sent is calculating and two kinds of fuzzy AHP of its weight.2. Mathematic Statistics MethodMathematic statistics method includes Principal Component Analysis, Factor Analysis and Cluster Analysis, etc. It is not an objective method based on experts judgment, so it can avoid the influence of the hum

14、an 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 fact

15、or of the evaluation target should have concrete data.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,

16、 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 pres

17、ent, it is mainly applied to qualitative objective evaluation and the method perfection of itself.4. Data Envelopment AnalysisDEA is a linear programming-based technique that converts multiple input and output measures into a single comprehensive measure of productivity efficiency （Epstein and Hende

18、rson, 1989） It 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 relati

19、ve 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

20、 each functional unit. This variable weighting allows for the evaluation of performance while taking into account differences in goals, responsibilities, and type of procurement The range of possible weights is controlled by requiring all weights to be positive, and specifying that if another unit u

21、sed 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 demonstr

22、ated 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 SetsRough sets approach was developed by Z.Pawlak, the mathematician of the Poland, who brought up the

23、 theory in 1982. It has very strong qualitative analysis ability, and it neednt 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

24、the relations that can distinguish or not. Because this characteristic is similar to the persons 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, s

25、o as to achieve the purpose to evaluate more effectively6. 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 deficiencies Benchmarking requires that

26、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

27、 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 oth

28、er 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 companys strategies to find the key and successful ones.

29、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 ki

30、nd 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

31、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 compet

32、itors 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 full understanding of the Companys 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 Sc