The following Box Scorecard was prepared for a value stream.
|
|
Last Week
|
This Week
(6/30/08)
|
Planned Future
State (12/31/08)
|
|
Operational
Units per person
|
100
|
108
|
115
|
|
On-time delivery
|
85%
|
90%
|
95%
|
|
Dock-to-dock days
|
12
|
11
|
9
|
|
First time through
|
60%
|
62%
|
70%
|
|
Average product cost
|
$75
|
$74
|
$70
|
|
Capacity
Productive
|
25%
|
26%
|
27%
|
|
Nonproductive
|
65%
|
62%
|
40%
|
|
Available
|
10%
|
12%
|
33%
|
|
Financial
Weekly sales
|
$800,000
|
$825,000
|
$1,000,000
|
|
Weekly material cost
|
$320,000
|
$330,000
|
$380,000
|
|
Weekly conversion cost
|
$280,000
|
$280,240
|
$320,000
|
|
Weekly value stream profit
|
$200,000
|
$214,760
|
$300,000
|
|
ROS
|
25%
|
26%
|
30%
|
Required
1. How many nonfinancial measures are used to evaluate performance? Why are nonfinancial measures used?
2. Classify the operational measures as time-based, quality-based, or efficiency- based. Discuss the significance of each category for lean manufacturing.
3. What is the role of the planned state column?
4. Discuss the capacity category and explain the meaning of each measure and its significance.
5. Discuss the relationship between the financial measures and the measures in the operational and capacity categories.