20x1 20x3 Theoretical annual capacity Actual production** Market size (in units sold) 249,600 249,600 208,000 1,300,000 234,000 1,300,000 Production hours available (40 workers) 104,000 104,000 83,200 $325 Very satisfied customers Actual cost per unit Days of inventory Number of defective units Total worker suggestions Hours of training Selling price per unit Number of new customers 140,400 $260 15.6 7.8 13,000 5,200 104 312 260 1,040 $195 $195 5,200 26,000 "Amount that could be produced given the available production hours; everything produced is sold. **Amount that was produced given the available production hours.
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
Required:
1. Compute the following measures for 20x1 and 20x3:
a. Actual velocity and cycle time
b. Percentage of total revenue from new customers (assume one unit per customer)
c. Percentage of very satisfied customers (assume each customer purchases one unit)
d. Market share
e. Percentage change in actual product cost (for 20x3 only)
f. Percentage change in days of inventory (for 20x3 only)
g. Defective units as a percentage of total units produced
h. Total hours of training
i. Suggestions per production worker
j. Total revenue
k. Number of new customers
2. For the measures listed in Requirement 1, list likely strategic objectives, classified according
to the four Balance Scorecard perspectives. Assume there is one measure per objective.
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