Problem 13.21 Scorecard Measures, Strategy Translation

At the end of 2014, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Mejorar undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Mejorar wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered:

Required:

1.Compute the following measures for 2014 and 2016:

a. Actual velocity and cycle time. If required, round your answers to two decimal places.

2014	2016
Actual velocity	_________________	per hour	_________________	per hour
Actual cycle time	_________________	minutes	_________________	minutes

b. Percentage of total revenue from new customers (assume one unit per customer). Round your percentage answer to one decimal place (for example, enter 4.628% as "4.6").

2014	_________________ %
2016	_________________ %

c. Percentage of very satisfied customers (assume each customer purchases one unit).

2014	_________________ %
2016	_________________ %

d. Market share.

2014	_________________ %
2016	_________________ %

e. Percentage change in actual product cost (for 2016 only). Enter a decrease as a negative value.

2016	_________________ %

f. Percentage change in days of inventory (for 2016 only). Enter a decrease as a negative value.

2016	_________________ %

g. Defective units as a percentage of total units produced. Round your answers to two decimal places (for example, enter 4.628% as "4.63").

2014	_________________ %
2016	_________________ %

h. Total hours of training.

2014	_________________ hours
2016	_________________ hours

i. Suggestions per production worker. Round your answers to one decimal place.

2014	_________________ per production worker
2016	_________________ per production worker

j. Total revenue.

2014	$ _________________
2016	$ _________________

k. Number of new customers.

2014	_________________
2016	_________________

2.Match the appropriate strategic objective to the measures given below.

Strategic Objective	Measure
_________________	Unit cost reduction (%)
_________________	Percentage of new revenues
_________________	Revenue
_________________	Percentage of very satisfied customers
_________________	Market share
_________________	Number of new customers
_________________	Cycle time/Velocity
_________________	Percentage defects
_________________	Days of inventory
_________________	Training hours
_________________	Suggestions per worker