Exam 11: Performance Evaluation Revisited: a Balanced Approach

The first step in developing a balanced scorecard is to clarify the strategic focus.As part of the process,many organizations develop a strategy map.Assume you are asked by your supervisor to develop a strategy for your organization.You have determined that the following strategies have been established by the company. $\bullet$ Achieve operational excellence $\bullet$ Develop trained workforce $\bullet$ Infuse corporate culture of quality throughout workforce $\bullet$ Develop reputation for quick turnaround $\bullet$ Retain and grow customer base $\bullet$ Manage customer relationships $\bullet$ Increase profit Required: Prepare a strategy map using the four balanced scorecard perspectives.

Which of the following is not an example of a lagging indicator?

Which of the following is a measure that relates to the internal business processes perspective?

Which of the following is not an example of an employee-oriented nonfinancial measure?

A lagging indicator "lags" the time period when a performance is measured.

Which of the following is not an example of a customer-oriented nonfinancial measure?

A balanced scorecard should include five to seven measures in each of four perspectives: Learning and growth,internal business processes,customer,and financial. Required: List five measures that relate to the customer perspective.

Patton's Manufacturing has provided the following information relating to a large order of Part #2347 transistors for a major customer: Raw materials ordered for Part #2347 July 1^st Part #2347 put into production July 12^th Part #2347 completed July 13^th Part #2347 transferred to finished goods July 14^th Date order accepted July 15^th Order assembled July 17^th,July 18^th,July 19^th Order delivered to warehouse July 21^st. Warehouse packaged order July 23 Call to customer that order was ready July 24^th Customer picked up order July 24^th What is the delivery cycle time? Appendix,

The time from the start of a production to the shipment of the product to the customer is referred to as

Measures that help predict a future result are referred to as

Qualitative indicators

Lagging indicators can be used to

Midstate Industries is a retail clothing store.Marilyn Mounds knows that customer satisfaction is key to the success of her store.Indicate by placing an "X" in the appropriate column whether the following measures are leading or lagging and qualitative or quantitative.Each item may classify as more than one measure.

You have been assigned to a team responsible for improving certain processes in your company.The team is considering participating in a benchmarking study as a way to improve the company's performance. Required: Define benchmarking and best practice.Also discuss how your company might benefit from benchmarking with an organization outside its industry.

On January 4^th,Stevens Manufacturing received an order for 30 uniforms.The following information pertained to that order. Hours Required Receive and process order 0.25 Waiting for production to begin 1.25 Cutting 50.00 Sewing and lettering 300.00 Moving materials from one station to another 20.00 Waiting for an operation to begin 95.00 Packaging 35.00 Loading to be shipped 0.50 In transit to customer 5.00 Calculate the value-added time.

A performance dashboard is most helpful when it

Earnings per share,although taken from accounting reports,is a qualitative measure.

A balanced scorecard does not

A pictorial representation of the cause-and-effect relationships embodied in the strategy is called a

Measures that provide managers with information they need to take timely,corrective action are referred to as