ACCA Strategic Professional · Advanced Performance Management · Management reports
Brelmont Logistics reports to its board on delivery performance. The monthly report shows on-time delivery of 96%, but the report does not state how 'on time' is defined, which depots are included or how the figure was collected. Which quality of useful management information is MOST clearly lacking?
Reliability and comparability are most clearly lacking. Without a definition of on time, the depots covered or the collection method, the board cannot verify the 96% figure or compare it consistently with targets and earlier periods, so the number cannot safely support decisions.
- ATimeliness, because the report is produced monthly
- BReliability and comparability, because the basis of measurement is not disclosedCorrect
- CCost-effectiveness, because the report has too many measures
- DRelevance, because delivery is not a business activity
Explanation
Without a stated definition, scope and collection method, readers cannot judge whether the 96% is accurate or compare it with prior periods or targets. The issue is not frequency, cost or irrelevance, since delivery performance is clearly relevant to a logistics firm.
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