By Laura H. Baldwin
To help the Air strength within the means of altering how it purchases providers, this document stories comparable advertisement region practices and indicates metrics to trace growth and refine companies procurement efforts through the years.
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Additional info for Air Force Service Procurement: Approaches for Measurement and Management
____________ 1 Procurement personnel training and ethics issues, two internal management topics of interest for commercial firms (as noted in Chapter Three), fall within the responsibilities of the Air Force Deputy Assistant Secretary for Contracting. Thus, we do not recommend AFPEO/CM metrics for them. , maverick buying) Change in Costs Relative to the Appropriate Market Index. This metric is relevant to services that have already been outsourced. Ideally, it is based on total ownership costs, rather than prices paid, to take into account the additional costs associated with procuring and 40 Air Force Service Procurement: Approaches for Measurement and Management managing the performance of the services.
Metrics Baseline Data In addition to the metrics implementation considerations discussed above, interviewees told us that their firms initially struggled to manage their expenditures on services because of a lack of baseline data for their chosen metrics. , what was purchased, for how much, from whom) was difficult to collect because internal data sources were often inadequate. In one case, the firm called upon its suppliers to provide needed baseline data about the firm’s purchases. One firm was lucky to have some business units that had carefully tracked expenditures for certain services.
Process metrics are used to track progress with specific parts of an implementation plan, and thus are forward looking. Outcome metrics are used to measure initiative results against prespecified goals. As an example, for a supplier development initiative, process metrics might track the number of people working on these efforts and the number of projects under way at a point in time. Outcome metrics may track whether expected savings or performance improvements were achieved. 5 provides illustrative examples of initiative metrics based on our interviews.