Modeling of a logistics hub performance measuring system

Pao Yue-kong Library Electronic Theses Database

Modeling of a logistics hub performance measuring system


Author: Leung, Yim-hong Dennis
Title: Modeling of a logistics hub performance measuring system
Year: 2004
Subject: Hong Kong Polytechnic University -- Dissertations
Business logistics -- Cost effectiveness
Business logistics -- Evaluation
Performance -- Measurement
Department: Dept. of Industrial and Systems Engineering
Pages: vii, 103, [6] leaves : ill. (some col.) ; 30 cm
Language: English
Abstract: The intense competition in logistics industry has drawn much attention in the field to establish performance measuring system which can facilitate proactive actions towards variation. Traditional financial control usually act on budget variation which may not have proper linkage or relationship with those operational parameters that effect on the variance. In view of this, we decide to modeling out a logistics performance measuring system though integrated approach. We aim to narrow down this measuring gap through correct activities based cost matching. In this study, we reviewed the whole system top down from the business goal, mapping across revenue generated layer, we then identify correspond operational cost driver levels and that of operational process. The objective finally is to achieve linkage to the respective Key performance indicators which have meaningful revenue indication. In this study, we initiate a case study based on this concept, we then tested for the respective KPI selection. The result indicates quite a positive correlationship among our selection. The case study also infer to us that in this dynamic and competitive business environment, we need to adapt and modify our key performance indicator to best fit our business goal such as profit maximization. The implication from the right choice of KPI for the operations has indicated positive effect on revenue. The importance of periodic review to traditional KPI setting has shown to be relevant to continuous improving operation. Otherwise the so called KPI may become something routine and carry no business meaning.

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