SHS Measuring SC Performance 2006 07

COLLEGE OF MANAGEMENT OF TECHNOLOGY
TOM – Chair of Technology and Operations Management

Odyssea, Station 5
CH – 1015 Lausanne
Tel. +41(0)21 693 0052 Fax +41(0)21 693 0020
2nd year SHS project – 2006-2007

Group Nr.
Measuring Supply Chain Performance
I. Project area
Performance evaluation remains one of the biggest challenges for today's companies. This
holds true for many individual companies, as well as, of the extended supply chain in which
they form part. In order to stage major improvement in this area we need to go beyond
traditional functional performance measures and develop new "integral" metrics both
operational and financial. These should provide sufficient detail and richness to steer
supply chain performance rather than individual business performance.
II. Project objective
In this project, we ask you to identify and research the operational and financial
performance measurements that are used in the supply chain environment. In order to
acquire a more holistic knowledge we ask you to present examples both from literature and
practice, analyze them and identify similarities and differences among them. You will then
elaborate to what extend the results of your analysis support the current theories.
III. Tasks, outputs and deadlines

The project will be pursued in English.
Here is the list of tasks for your project, which are detailed below:
Task Begin Due date Points

1. Build up background knowledge xx.xx.xxxx xx.xx.xxxx -
2. Research the currently used supply chain
xx.xx.xxxx xx.xx.xxxx 15
performance metrics in theory
3. Research the currently used supply chain
xx.xx.xxxx xx.xx.xxxx 15
performance metrics in practice
4. Theory vs. practice xx.xx.xxxx xx.xx.xxxx 10
5. Final report xx.xx.xxxx xx.xx.xxxx 30
6. Presentation xx.xx.xxxx 30
The exact deadlines of the various tasks are subject to be determined. The respective reports can
be delivered any time before the deadlines, which also applies to the submission of the complete
report.
After each phase, a report in full text is expected (in the same form as the final report, see below).
1. Build up background knowledge

SHS Project
EPFL – TOM page 2
In this part you are expected to read the suggested literature and search for further readings to
understand the context of the project and more specifically:
- Understand what are supply chains

- Understand what are performance measurements
- Understand the importance of the use of performance measurements
This phase builds the necessary background knowledge to be able to pursue the work in the
preceding phases. Therefore, each member of the group is asked to take part in this phase by
reading all given references (see point VI below). No deliverable has to be submitted.
2. Research the currently used supply chain performance metrics in theory
In this part you should identify the supply chain performance measurements that are used in theory.
Possible questions that can be answered are:
- Which SC performance measures are used in literature?
- Which are the most important and why?
- How are they formulated and used?
- What are the main theoretical insights from the implementation of performance
measurement?
To identify relevant examples, you should build on your knowledge from reading the provided
literature and search the internet. This phase is concluded with the submission of a report that will
answer the aforementioned questions.
3. Research the currently used supply chain performance metrics in practice
This phase serves to analyze the way the aforementioned metrics are being used in practice. You
should find examples of supply chains that implemented a “performance measurement system”.
Possible questions that can be answered are:
- Which SC performance measures are used in practice?
- How was the metric evaluation implemented?
- What were the problems that occurred in the implementation process?
- What are the main insights from the implementation of a performance measurement
system in a supply chain?
Similarly, this phase is concluded with the submission of a report.
4. Theory vs. practice
In this part of the project you have to identify the discrepancies between theory and practice. More
precisely, you have to investigate the main similarities and differences between the supply chain
metrics that appear in literature and the ones that are used in practice. These could be located in
the way they are implemented, in their definitions and/or in their main findings. You will elaborate to
what extend the results of your analysis support the current theories. This phase is concluded with
the submission of a report.
5. Final report
A report between 20 and 40 pages is expected respecting the principles of scientific writing as:
- tables of contents,
- bibliography,
- correct referencing,
- clear structure in chapters.
For reference about academic writing, see the following address: http://www.uefap.co.uk/writing/.
One paper version and one electronic version are expected. A first version of the report has to be
given around 10 days before the oral presentation.
SHS Project
EPFL – TOM page 3
6. Presentation
To successfully conclude the project, the entire work has to be presented in front of a panel of
professors and assistants. The work has to be summarized in order that the objectives, the analysis
and the results are understandable for people who have never heard about the subject. Do not go
too deep into details and do not exceed the time frame, which is around 20 minutes!
The oral presentation takes place between May and June 2007.
IV. General objectives of SHS projects – Responsibilities

The general objectives of this project are:
1. The learning of new topics which are not directly related with the students' background;
2. The performing of a project with clear deadlines and tasks in a self-organized group of
students;
3. The reporting of the research methodologies and results;
4. The oral presentation in front of a panel of professors and assistants.
It is expected that you reach these objectives and the evaluation/grading will be made in relation to
them.
V. Evaluation and grading

After each phase you will receive a detailed evaluation of the work submitted along with its
corresponding grade. It will include a general assessment of the work and outline possible ways for
improvement. You will receive a final grade only after the completion of all phases. The successful
completion of the project requires successful completion of each individual phase, which requires
that are all reports should get at least a grade 4 out of 6.
VI. References / Literature

The following references are expected to be read during the initial training phase of the project. The
ones which are not available from EPFL's library website (http://library.epfl.ch/periodiques/) can be
sent on request.
1. Beamon, B. M., Supply Chain Design and Analysis: Models and Methods, International Journal
of Production Economics, Vol. 55, No. 3, pp. 281-294 (1998)
2. Beamon B. M., Measuring Supply Chain Performance, International Journal of Operations and
Production Management, Vol. 19, No. 3, pp. 275-292 (1999)
3. Hausman, W. H., Supply Chain Performance Metrics, The Practice of Supply Chain Management
(2003).
4. Lambert D. M. and Pohlen T. L., Supply Chain Metrics, The International Journal of Logistics
Management, Vol. 12, No. 1 (2001)
5. Shen T., Linking Supply Chain Practices to Operational and Financial Performance, Supply Chain
2020 Project Working Paper, MIT Center for Transportation and Logistics
http://ctl.mit.edu/public/SCM%20Versus%20Performance%20Final.pdf#search=%22Linking%20Su
pply%20Chain%20Practices%20to%20Operational%20and%20Financial%20Performance%22
Teacher: Prof. Ralf Seifert

ralf.seifert@epfl.ch
Odyssea 1.03
021 693 0022 (internal: 3 0022)
Assistant: Margarita Protopappa

SHS Project
EPFL – TOM page 4
margarita.protopappa@epfl.ch
Odyssea 1.16
021 693 0052 (internal: 3 0052)

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COLLEGE OF MANAGEMENT OF TECHNOLOGY

TOM – Chair of Technology and Operations Management

2nd year SHS project – 2006-2007

Measuring Supply Chain Performance

II. Project objective

III. Tasks, outputs and deadlines

Task Begin Due date Points

1. Build up background knowledge

- Understand what are supply chains

2. Research the currently used supply chain performance metrics in theory

3. Research the currently used supply chain performance metrics in practice

4. Theory vs. practice

IV. General objectives of SHS projects – Responsibilities

V. Evaluation and grading

VI. References / Literature

Teacher: Prof. Ralf Seifert

Assistant: Margarita Protopappa

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