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LEVERAGING RESPONSE MANAGEMENT TO IMPROVE OPERATIONS PERFORMANCE

By Littleson, Randy
Publication: Industry Week
Date: Monday, August 1 2005
HEADNOTE

Response Management

Frequent changes to demand, supply, capacity, and product can spread over a multi-site enterprise and global supply chain, creating ripples that may swell to a tidal wave by the time they

hit the point of action-the moment just before execution when response decisions must be made.

Responding rapidly at the point of action can be difficult, but doing so in a way that aligns with corporate objectives is even harder. This is especially true when hundreds of these make-or-break decisions must be made throughout the enterprise on any given day.

While many organizations are increasing awareness of corporate metrics by communicating them more broadly throughout the enterprise, their focus tends to be historical-i.e., limited to a view of past performance. An inherent disconnect also arises because financial professionals and company management tend to examine metrics in terms of dollars and cents, whereas operations looks at them in terms of units.

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