Nonfinancial Performance Measures Diamond Inc. is an Internet retailer of woodwo

Question

Nonfinancial Performance Measures Diamond Inc. is an Internet retailer of woodworking equipment. Customers order woodworking equipment from the company, using an online catalog. The company processes these orders and delivers the requested product from its warehouse. The company wants to provide customers with an excellent purchase experience in order to expand the business through favorable word-of-mouth advertising and to drive repeat business. To help monitor performance, the company developed a set of performance measures for its order placement and delivery process For each performance measure, identify it as either an input or output measure related to the "order placement and delivery" process. Performance Measure Input/Output Average computer response time to customer "clicks". Dollar amount of returned goods. Elapsed time between customer order and product delivery. Maintenance dollars divided by hardware investment. Number of customer complaints divided by the number of orders. Number of misfilled orders divided by the number of orders. Number of orders per warehouse employee. Number of page faults or errors due to software programming errors Number of software fixes per week. Server (computer) downtime Training dollars per programmer.

Explanation / Answer

Performance Measure Input/Output Average computer response time to customer “clicks” Output Dollar amount of returned goods Output Elapsed time between customer order and product delivery Output Maintenance dollars divided by hardware investment Input Number of customer complaints divided by the number of orders Output Number of misfilled orders divided by the number of orders Output Number of orders per warehouse employee Input Number of page faults or errors due to software programming errors Output Number of software fixes per week Input Server (computer) downtime Input Training dollars per programmer Input

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