The following Box Scorecard was prepared for a value stream:

Required:
1. How many nonfinancial measures are used to evaluate performance? Why are nonfinancial measures used?
2. Classify the operational measures as time-based, quality-based, or efficiency-based. Discuss the significance of each category for lean manufacturing.
3. What is the role of the Planned Future State column?
4. Discuss the capacity category and explain the meaning of each measure and its significance.
5. Discuss the relationship between the financial measures and the measures in the operational and capacity categories.

Transcribed Image Text:

Last Week This Week (6130/13) Planned Future State (12/31/13) Operational Units sold per person On-time delivery Dock-to-dock days First-time through Average product cost Capacity Productive Nonproductive Available Financial Weekly sales Weekly material cost Weekly conversion cost Weekly value-stream profit ROS 100 108 60% S75 70% 27% 40% 33% 10% 12% S800,000 S825,000 $1 S320,000 S330,000 S280,000 S280 S200,000 S1,000,000 S 380,000 S 320,000 S ,240 $214,760 300,000 30%