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Chapter 7-The Balanced Scorecard: A Tool To Implement Strategy
Chapter 7-The Balanced Scorecard: A Tool To Implement Strategy
IMPLEMENT STRATEGY
Melody Fabrications, Ltd., of Dasmariñas, Cavite, has recently begun a continuous improvement
campaign in conjunction with a move toward JIT production and purchasing. Manage has
developed new performance measures as part of this campaign. The following operating data
have been gathered over the last four months:
Month
1 2 3 4
Management would like to know the company's throughput time manufacturing cycle efficiency,
and delivery cycle time. The data to compute these measures have been gathered and appear
below:
Month
1 2 3 4
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Wait time per order before start of
As part of its continuous improvement program, the company is planning to move toward a JIT
purchasing and production system.
Required:
Answer:
Solutions:
Month 1
Throughput time= 0.5+0.6+3.6+0.7 = 5.4
MSE= 0.6/5.4= 11.1%
Delivery Cycle Time= 5.4+9.6 = 15
Month 2
Throughput time= 0.5+0.5+3.6+0.7=5.3
MSE=0.5/5.3= 9.4%
Delivery Cycle Time= 5.3+8.7= 14
Month 3
Throughput time= 0.4+0.5+2.6+0.4= 3.9
MSE= 0.5/3.9= 12.8%
Delivery Cycle Time= 3.9+5.3= 9.2
Month 4
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Throughput time= 0.5+0.4+1.7+0.3= 2.9
MSE= 0.4/2.9= 13.8%
Delivery Cycle Time= 2.9+4.7= 7.6
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