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 83,200 117,000 Actual cost per unit $320 $256 Days of inventory 14 7 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 Required 1 Compute the following measures for 20x1 and 20x3 a Actual velocity and cycle time If required, round your answers to two decimal places 20x1 20x3 Actual velocity 2 00 per hour 2 25 per hour Actual cycle time 30 00 minutes 26 67 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 ) 20x1 2 50 20x3 c Percentage of very satisfied customers (assume each customer purchases one unit) 20x1 20x3 d Market share 20x1 16 00 20x3 18 00 e Percentage change in actual product cost (for 20x3 only) Enter a decrease as a negative value 20x3 f Percentage change in days of inventory (for 20x3 only) Enter a decrease as a negative value 20x3 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 20x3

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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

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	83,200	117,000
Actual cost per unit	$320	$256
Days of inventory	14	7
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.

Required:

1. Compute the following measures for 20x1 and 20x3:

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

	20x1		20x3
Actual velocity	2.00	per hour	2.25	per hour
Actual cycle time	30.00	minutes	26.67	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").