XYZ Inc. is a chemical manufacturing company. XYZ requires high levels of consistency and precision from certain suppliers in their machining work. In order to drive continuous improvement with these suppliers, XYZ should develop KPIs to track performance in which of the following areas?
Correct Answer: B
For a chemical manufacturing company like XYZ Inc., which requires high levels of consistency and precision, developing KPIs to track performance in the area of quality is crucial. Quality KPIs will help ensure that the machining work meets the required standards and specifications. Continuous monitoring and improvement of quality can lead to better product consistency, fewer defects, and higher customer satisfaction.
References:
* "Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl
* Articles on quality management and KPIs in manufacturing from the Journal of Supply Chain Management