588 Accounting: Business Reporting for Decision Making
DECISION The objective would be to collect information about your pizza chain that differentiates
the two groups. Then concentrate on the factors most favoured by the families. The measurements
of these factors become your key performance indicators. Research into the food and drink choices
of teenagers and families could help determine what changes to the menu items would be necessary.
Tallies of food items bought by the different groups could be collected. The time spent in each store
by each group could also be tallied. A ratio of time in store to dollar spend could be used for each
group. Customer surveys could be carried out to determine what types of food and service delivery
each group expects. Advertising spend focused on each type of customer group could be investigated
and collected.Figure 14.8 gives examples of non-financial performance measures.
Operating performance measuresQuality — customer satisfaction- Number of defective products shipped
- Customer response time
- Warranty claims
- Number of customer complaints
- On-time deliveries
- Number of return visits/orders
- Customer return visits
- Customer survey
Quality — supplier- Percentage of defects per delivery
- Frequency of defective supplies
- Number of late deliveries
Quality — internal measures- Number of defects per product/product run
- Measure of scrap and rework in the production process
- First pass yields and process yields in the production process
- Number of suggestions from employees
- Process downtime
Inventory- Number of inventoried items
- Inventory turnover
- Warehouse space reduction
- Warehouse space utilisation
Material and scrap- Target versus actual material use
- Actual quantity of product scrapped
Equipment and maintenance- Machine use and capacity
- Equipment productivity
- Machine availability
- Maintenance hours
- Time between failure
(continued)