Question

Surrey Glass Manufacturing. manufactures a variety of high quality electronic components. Data from the last three months are presented below:

April May June Direct materials partial productivity 0.85 0.86 0.87 Overtime hours worked 80 75 72 Defect rate 2.00% 1.95% 1.92% On time delivery 98.0% 98.3% 98.0% Set up time (average in hours) 6.90 6.85 6.80 Number of machine breakdowns 2 1 1 Downtime (hours) 12.0 11.5 11.25 Number of products returned 6 5 4 Throughput time (hours) 12.0 11.8 11.5

You are the new assistant controller for Ranger and the controller has asked you to review the performance over the last 3 months and write a summary analysis with your recommendations for follow up or further monitoring. In addition, the controller notes that the company, although it has many detailed performance measures, is considering implementing a balanced scorecard and asks you to identify the measures you think would be most appropriate to include in the balanced scorecard.

Required: Analyze the performance and prepare a detailed Balanced Scorecard.

Answer 1

Being a new the review the notiable assistent controller for Ranger, os per of performance of last 3 months points are as follows Direct material partial producavity is increasing mon Th by month which means Ranger has installed some high efficient machinery or technique overtime hours worked, defect rates, setup times, downtime are reduced because of the use of new technology and advancements Products returned have also reduced because of producteon Of Quality Products 3) Balance Scorecard measures Financial prospe ctve : lower Retums, lower overtime charges 2) Customer prospective : NO of products retumed, on Time Delivery 3). Internal Business perspectie : Throughput time Down tine w organizational capacity perspectre Defect rate Sleefup Time