Balanced Scorecard

Question 1

What are the four perspectives of BSC?

Answer 1

• Financial
• Customer
• Process
• Learning and Growth

Question 2

Give 4 examples of strategic objectives in the financial perspective and their corresponding measures

Answer 2

Increase revenue, new products - Percentage of revenue from new products

Decrease operating expenses - Operating expenses

Increase ROI - ROI

Decrease collection period, A/R - Average collection period

Question 3

Give 2 examples of strategic objectives in the customer perspective and their corresponding measures

Answer 3

Increase customer satisfaction - Satisfaction index

Increase customer acquisition - Number of new customers

Question 4

Give 2 examples of strategic objectives in the process perspective and their corresponding measures

Answer 4

Decrease Development cycle - Cycle time/New products

Decrease Rework - Percentage units reworked

Question 5

Give 5 examples of strategic objectives in the Learning and Growth perspective and their corresponding measures

Answer 5

Increase Suggestions Implemented - Number of suggestions implemented

Increase Employee Morale - Satisfaction Index

Increase Access to Information - Percentage of Employees with access

Increase Employee Productivity - Output/Hour

Increase Employee Skills - Hours of training

Question 6

Classify into a perspective: Decrease operating expenses

Answer 6

Financial

Question 7

Classify into a perspective: Increase Employee Morale

Answer 7

Learning & Growth

Question 8

Classify into a perspective: Increase Employee Skills

Answer 8

Learning & Growth

Question 9

Classify into a perspective: Decrease Rework

Answer 9

Process

Question 10

Classify into a perspective: Decrease Development cycle

Answer 10

Process

Question 11

Classify into a perspective: Increase customer satisfaction

Answer 11

Customer

Question 12

Classify into a perspective: Increase customer acquisition

Answer 12

Customer

Question 13

Process value chain is made up of three processes:

Answer 13

1. The innovation process
2. The operations process (quality, efficiency, process time)
3. The post sales service process

Question 14

What is cycle time? Which objective is relevant to it?

Answer 14

Cycle time is the length of time it takes to produce a unit of output from the time materials are received until the good is delivered to finished goods inventory.

Process objective

Question 15

What is velocity? Which objective is relevant to it?

Answer 15

The number of units of output that can be produced in a given period of time

Process objective

Question 16

Manufacturing cycle efficiency

Answer 16

Formula: Processing time/Processing time + non value added time

MCE measures the proportion of manufacturing cycle time attributable to value-added processing. Without waste, the ratio should be 1.0.

Question 17

Learning and growth is concerned with three major enabling factors:

Answer 17

1. Employee capabilities
2. Information systems capabilities
3. Employee attitudes