Strategic Sourcing: Measuring And Managing Performance by Laura H. Baldwin

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By Laura H. Baldwin

Stressed to enhance functionality and decrease bills, the Air strength is reexamining the resource of provision of lots of its help actions equivalent to set up prone. This documented briefing describes how leading edge advertisement shoppers and world-class companies of facility administration companies (analogous to base working aid companies) use functionality metrics of their sourcing judgements. those agencies use functionality metrics to notify the unique make/buy selection, to steer the resource choice, to control the customer/provider courting, and to enhance the availability of prone through the years. even supposing the practices of cutting edge advertisement companies vary dramatically from the Air Force's conventional method of sourcing, they're greatly suitable with present Air strength efforts to increase the advantages of acquisition reform to prone acquisition. as well as utilizing functionality metrics to concentration its restricted sourcing assets on these

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13However, even simple measures like cost savings can lead to distortions. For example, placing too much emphasis on the current cost of providing facilities services may lead a provider to forgo preventive maintenance (thus increasing long-term costs) that its customer would be willing to pay for. 14 However, the metrics customers and providers use to justify budgets may be very different. The metrics providers use for this purpose may contain much more detail about operations than customers convey to high-level corporate leaders.

Instead, a technician scans a work order, creating a time stamp marking initiation of work. The technician also scans the piece of equipment to be serviced, recording the serial number and type of equipment. Parts are scanned to record materials used to perform the work. After completing the service, the technician scans the work order again to create a closing time stamp. This information is then either transmitted or downloaded into a computer at the end of the day. The technician no longer needs to manually keep track of his/her time or the materials that he/she uses during the day.

One provider added a manager at one of its best customer’s site to help improve data entry. This person reinforced employee responsibility for data accuracy by tracking errors back to individuals and reporting those errors to their supervisors. This provider emphasized the key role that communication plays in improving data accuracy. Not only is it important to track errors and hold people accountable for them, it also is important to communicate to employees how others (whom they may never see) use the data that they enter.

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