Scorecard Measures, Strategy Translation

At the end of 20x1, 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:

		20x1		20x3
Theoretical annual capacity*		249,600		249,600
Actual production**		208,000		234,000
Market size (in units sold)		1,300,000		1,300,000
Production hours available (40 workers)		104,000		104,000
Very satisfied customers		62,400		117,000
Actual cost per unit		$340		$272
Days of inventory		16		8
Number of defective units		14,560		7,020
Total worker suggestions		120		320
Hours of training		260		1,040
Selling price per unit		$190		$190
Number of new customers		5,200		25,740

^*Amount that could be produced given the available production hours; everything produced is sold. ^**Amount that was produced given the available production hours.

e. Percentage change in actual product cost (for 20x3 only). Enter a decrease as a negative value.

20x3	fill in the blank 11 %

f. Percentage change in days of inventory (for 20x3 only). Enter a decrease as a negative value.

20x3	fill in the blank 12 %

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").

20x1	fill in the blank 13 %
20x3	fill in the blank 14 %

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

20x1	fill in the blank 17 per production worker
20x3	fill in the blank 18 per production worker

j. Total revenue.

20x1	$fill in the blank 19
20x3	$fill in the blank 20