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The Expanded Case Study at Simpson Water Heaters

When everyone was back from their break, Tom began again with his case study. “The CEO began to explain, ‘Before we develop our performance metrics, let’s first discuss the purposes of an organization’s performance metrics. In general, we need some type of feedback mechanism that tells us how we’re doing. A way to be able to know that the direction we’re traveling is on course. That is, in the event that we need to make any midcourse corrections. These performance metrics should be system related, in that they tell us how the system is performing, rather than how individual processes are working. Remember, our focus is on system performance, and not individual performance. So, think about ...

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