“The purpose of measurements is to motivate the parts to do what is good for the supply chain as a whole.”
The success of any product is determined in part by the manufacturer and in part by the rest of the supply chain. All it takes is one small part of the supply chain not doing its job properly to kill everyone else’s effort and profits. If an end customer is not happy with the availability, service, or quality of a product, the entire supply chain is hurt. Unfortunately, today’s frame of reference (local optima) often blinds the responsible party from seeing the problem and from taking quick, effective action to overcome it.
Even when end customers are happy, supply chains may carry far too much inventory. ...