Question

World-class performance measures can be used in different functional areas of a firm to satisfy objectives, enhance the value of the firm's products and services, and increase customer satisfaction by providing measures in which of the following capability area(s)? a. Quality b. Cost c. Customer Service d. All of these

Answer 1

Answer:

D) All of these

Explanation:

World class performance measures can be used in different functional areas, for example International Organization for Standardization (ISO) norms apply to all the functional areas of a company:

• ISO 9000 - Quality Management
• ISO 27000 - Information Security Management Systems
• ISO 14000 – Environmental Management
• ISO 31000 - Risk Management
• ISO 50001 - Energy Management
• ISO 26000 - Social Responsibility
• ISO 28000: 2007 – Specifications for Security Management Systems for the Supply Chain
• ISO 37001: 2016 Anti-Bribery Management Systems
• ISO 45001 – Occupational Health and Safety
• ISO 22000 – Food Management Systems

Other types of world class performance measures that are not as established and recognized as ISO norms, but are gaining momentum in modern management like World Class Manufacturing (WCM) framework focus on four main areas:

• Manufacturing competitive products: measure quality performance
• Manufacturing product mix and volume: measure cost performance  
• Short lead-times and make-to-order: measure delivery performance  
• New product introductions: measure flexibility performance