Problems with Today

1
Problems with Todays Reporting

• Timing is too long-term
• Monthly is not soon enough
• Focus is poor
• Need attention to operational metrics
• Attitude towards variances is defensive
• Pay attention to cause and response

2
The Balanced Scorecard

• Results of Operations vs.
• operating information for results

3
The Balanced Scorecard
Financial Related
Customer Related
Learning Growth
Internal Business Processes
4
Balanced Scorecard Components

• Financial Perspective
• Customer Perspective
• Internal Business Process Perspective
• Learning and Growth Perspective

5
The Measures

• Approximately 4-7 per section
• Link the measurescause effect

6
Measuring InternalBusiness Processes
Customers Order Received
Production Started
Goods Shipped
Process Inspection Move Queue Time
Wait Time
Throughput (Manufacturing Cycle) Time
Delivery Cycle Time

• MCE processing
  time throughput time
• Throughput time (processing inspection
  movement waiting)
• Throughput time value added non-value added
  time