CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
6th Edition
ISBN: 9781264445356
Author: Noreen
Publisher: MCG
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Chapter 12, Problem 12.10E
To determine
Introduction: Balanced scorecard contains a set of financial and non-financial measures that relates to critical success factor. It helps the companies to assess the overall performance and improvement of the operation process.
To prepare: A worksheet indicating whether each given item focused on operational excellence, product leadership, or customer intimacy and to explain the same.
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The table below contains performance measures companies might use as internal business process measures in their balanced
scorecards. Each measure is accompanied by a + or - to indicate whether the performance measure should increase or decrease over
time.
Required:
For each measure, place an X in one of the three columns indicating whether the measure would be adopted by a company pursuing
a strategy focused on operational excellence, product leadership, or customer intimacy.
Item
Example Number of patents approved (+)
1. Delivery cycle time (-)
2. Number of new products designed (+)
3. Average contact hours per customer (+)
4. Non-value-added activity costs (-)
5. Percent of suppliers with long-term contracts (+)
6. Number of modular product designs (+)
7. Number of customized products co-designed with customers (+)
8. Defect-free units as a percentage of completed units (+)
9. Number of options available for customers to choose from (+)
Operational Product
Excellence Leadership
X…
Jalancu Juviai u
The following are a number of measures associated with the Balanced Scorecard.
Required:
1. Classify each performance measure as belonging to one of the following perspectives: financial, customer, internal business process, or learning and growth.
a. Number of new customers
b. Percentage of customer complaints resolved with one contact
C. Unit product cost
d.
Cost per distribution channel
e. Suggestions per employee
f.
Warranty repair costs
Consumer satisfaction (from surveys)
Cycle time for solving a customer problem
Strategic job coverage ratio
j.
On-time delivery percentage
k. Percentage of revenues from new products
2. Select an additional measure that would be appropriate for each of the four perspectives.
Contribution margin by product ▾
Number of complaints
Number of accidents per month
Hours of continuing education provided per month
g.
h.
i.
Financial
Customer
Customer
Internal business process
Financial
Financial
Learning and growth
Learning and growth…
Problem #13: Balanced Scorecard
a. List the four areas of a balanced scorecard. Describe each area clearly and concisely.
b. Define a KPI
c. Pick a real world company and give an example of a KPI for each balanced scorecard area for that company.
Chapter 12 Solutions
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
Ch. 12 - Prob. 12.1QCh. 12 - Prob. 12.2QCh. 12 - Prob. 12.3QCh. 12 - Prob. 12.4QCh. 12 - Prob. 12.5QCh. 12 - Prob. 12.6QCh. 12 - Prob. 12.7QCh. 12 - Prob. 12.8QCh. 12 - Prob. 12.9QCh. 12 - Prob. 12.10Q
Ch. 12 - Prob. 1AECh. 12 - Prob. 12.1ECh. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Prob. 12.6ECh. 12 - Prob. 12.7ECh. 12 - Prob. 12.8ECh. 12 - Scorecard Performance Measures LO 12–1, LO...Ch. 12 - Prob. 12.10ECh. 12 - Prob. 12.11ECh. 12 - Prob. 12.12PCh. 12 - Prob. 12.13PCh. 12 - Prob. 12.14PCh. 12 - Prob. 12.15PCh. 12 - Prob. 12.16PCh. 12 - Prob. 12.17PCh. 12 - Creating a Balanced Scorecard LO 12–4 Ariel Tax...Ch. 12 - Prob. 12.19PCh. 12 - Prob. 12.20PCh. 12 - Prob. 12.21C
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- Compare and contrast short- and long-term goals for a company. Give an example of each, and explain why they are important for performance measurement systems.arrow_forwardClassify each of the following performance measures into the balanced scorecard perspective to which it relates: financial perspective, internal operations perspective, learning and growth perspective, or customer perspective. A. Number of improved products B. Time from packaging to delivery or display C. Production costs D. Number of customer suggestions E. Sales mix revenues F. Number of repeat customersarrow_forward(Appendix 11A) Balanced Scorecard The following list gives a number of measures associated with the Balanced Scorecard: a. Number of new customers b. Percentage of customer complaints resolved with one contact c. Unit product cost d. Cost per distribution channel e. Suggestions per employee f. Warranty repair costs g. Consumer satisfaction (from surveys) h. Cycle time for solving a customer problem i. Strategic job coverage ratio j. On-time delivery percentage k. Percentage of revenues from new products Required: 1. Classify each performance measure as belonging to one of the following perspectives: financial, customer, internal business process, or learning and growth. 2. Suggest an additional measure for each of the four perspectives.arrow_forward
- Question 5.1 For each of the following balanced scorecard measures, A – Financial B – Customer C – Internal Business Process D – Learning and Growth Required Match with the appropriate perspective: Number of new customers Percentage of defective product units Number of patents Customer profitability Customer cost per unit Return on assets Average job-related training hours per employee Product cost per unit Employee turnover rate Percentage of processes with real-time feedbackarrow_forwardClassify the performance measures below into the most likely balanced scorecard perspective itrelates to. Label your answers using C (customer), P (internal process), I (innovation and growth), or F(financial). Number of new products introducedarrow_forwardProblem #13: Balanced Scorecard a. b. Define a KPI c. Pick a real world company and give an example of a KPI for each balanced scorecard area for that company.arrow_forward
- Classify the performance measures below into the most likely balanced scorecard perspective itrelates to. Label your answers using C (customer), P (internal process), I (innovation and growth), or F(financial). Customer satisfaction indexarrow_forwardDescribing the balanced scorecard and identifying key performance indicators for each perspective Consider the following key performance indicators, and classify each according to the balanced scorecard perspective it addresses. Choose from financial perspective, customer perspective, internal business perspective, or learning and growth perspective. a. Number of employee suggestions implemented b. Revenue growth c. Number of on-time deliveries d. Percentage of sales force with access to real-time inventory levels e. Customer satisfaction ratings f. Number of defects found during manufacturing g. Number of warranty claims h. Return on investment i. Variable cost per unit j. Percentage of market share k. Number of hours of employee training l. Number of new products developed m. Yield rate (number of units produced per hour) n. Average repair time o. Employee satisfaction p. Number of repeat customersarrow_forwardDescribing the balanced scorecard and identifying key performance indicators for each perspective Consider the following key performance indicators, and classify each according to the balanced scorecard perspective it addresses. Choose from a financial perspective, customer perspective, internal business perspective, or learning and growth perspective. Number of employee suggestions implemented Revenue growth Number of on-time deliveries Percentage of salesforce with access to real-time inventory levels Customer satisfaction ratings Number of defects found during the manufacturing Number of warranty claims Return on investment Variable cost per unit Percentage of market share Number of hours of employee training Number of new products developed Yield rate (number of units produced per hour) Average repair time Employee satisfaction Number of repeat customersarrow_forward
- Describing the balanced scorecard and identifying key performance indicators for each perspective Consider the following key performance indicators, and classify each indicator according to the balanced scorecard perspective it addresses. Choose from the financial perspective, customer perspective, internal business perspective, and the learning and growth perspective. a. Number of customer complaints b. Number of information system upgrades completed c. Residual income d. New product development time e. Employee turnover rate f. Percentage of products with online help manuals g. Customer retention h. Percentage of compensation based on performance i. Percentage of orders filled each week j. Gross margin growth k. Number of new patents l. Employee satisfaction ratings m. Manufacturing cycle time (average length of production process) n. Earnings growth o. Average machine setup time p. Number of new customers q. Employee promotion rate r. Cash flow from operations s. Customer…arrow_forwardRequirements 1. 2. Each of the items describes a key performance indicator. Determine which of the balanced scorecard perspectives is being addressed (financial, customer, internal business, or learning and growth). Read the company initiatives and determine which of the balanced scorecard perspectives is being addressed (financial, customer, internal business, or learning and growth). Requirement 1. Each of the following describes a key performance indicator. Determine which of the balanced scorecard perspectives is being addressed (financial, customer, internal business, or learning and growth). Performance Indicator a. Employee turnover Perspective b. Earnings per share c. Percentage of on-time deliveries d. Revenue growth rate Percentage of defects discovered during e. manufacturingarrow_forwardWhich of the following describes the best way to build/create a balanced scorecard? O a. Step 1. Create a strategy map that captures the company's strategy and shows the cause-and-effect relationships (links) between different parts of the strategy. Step 2. Define performance measures in each of the 4 perspectie or categories of the Balanced Scorecard based on the strategy map O a. Step 1. Examine best practices for "Key Performance Indicators' used by Fortune 500 companies. Step 2. Use all of the measures which are used in the "best practice" examples. O a Step 1. List all possible performance measures that the compaury could cse Step 2. Put each measure into ane of the 4 perspectives" or categories of the Balanced Scorecard.arrow_forward
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