Do Performance Criteria Matter

Most of us have been involved in some sort of organization that used quantitative performance criteria. Here are three examples.

1. Assault helicopter company: Not Mission Capable (NMC) rate. This was the percent of the company’s aircraft that were not fully mission ready because of unperformed maintenance, missing parts, etc.
2. Traffic tickets issued per shift: This is a quota used by a handful of poorly-managed police departments.
3. Customer wait time: In a fast-food restaurant, the number of seconds between receiving a customer order (typing it into the register), and finishing the transaction (receiving payment and issuing the receipt).

Have you ever been a part of such an organization? Describe it. Describe the performance criteria that were in place. Were they closely monitored? Did they matter? Why or why not? (If you have not been a part of such an organization, feel free to tap into the experiences of a friend or family member who has.)

LOG 302

Mod 4 is about reverse logistics which includes, among other things, the management of retail returns. And this has become a Big Thing.

Many online merchants make a familiar offer – free shipping, either as a limited offer or a regular thing, and free returns. How effective is that offer, in attracting your business? Before answering, reflect upon the fact that nothing’s really free; the UPS charges don’t come out of corporate profits, they’re included in the prices of the goods. And if you live in New England, then LL Bean (in Maine) is sticking you with the same markup as a customer who lives in LA. Is that fair? Elaborate.