Reference no: EM132602772

A Balanced Scorecard measures an organization's performance on four key perspectives. Autorite Manufacturing Inc. (AMI) has defined the following objectives and measures for the coming year.

Objectives

1. To be the preferred supplier for at least 80% of our customers
2. Focus efforts on leading products
3. Increase profitability by 20%
4. Train and develop all team leaders by the end of 2013
5. Maintain the rate of customer satisfaction at 95%
6. Attain manufacturing excellence
7. To be the lowest cost producer in our industry
8. Reduce the time to market the products by 2 months

Measures

1. Compare current time to market to 2-year average
2. Employee retention rate
3. Share of key customer accounts
4. Return on equity
5. Percentage of products representing 80% of sales
6. Yield, cycle time
7. Unit cost
8. Number of customer complaints

REQUIRED:

Question a) Make a Balanced Scorecard for AMI. Classify each of AMI's objectives, and its matching measure, in the appropriate category.

Question b) State four factors that contribute to the successful implementation of a Balanced Scorecard.