ABSTRACT
This chapter deals with internal performance metrics. The chief executive officer of a manufacturing company was trying to figure out how to increase profitability. His company assembled products from parts provided by suppliers. Most metrics systems are constructed like this joke: they measure what’s easy to measure rather than what’s important to measure. CROmed has a fairly straightforward set of performance goals, although a bit more complex than BioStart. Changing the metric to timeliness metric or to efficiency metric gives us a great deal of information to work with and immediately tells us whether remedial action is required. The odds of picking the right metrics from such a large number of possibilities are very small indeed. Inventrix has perhaps the most difficult strategy of the several companies: it is attempting to build its product line through means other than discovery, and grow relationships with its customers on existing products.
