Chapter 18 – Performance Measurement to Support Business Strategy
18–11
18–35. (20 min.) Manufacturing Cycle Time and Efficiency.
Manufacturing
cycle efficiency
=
Processing time
Processing time + Moving time + Storing time + Inspection time
=
5 hrs.
5 hrs. + 3 hrs + 15 hrs. + 2 hrs.
=
5 hrs.
25 hrs.
=
20%
18–36. (20 min.) Employee Involvement.
Answers will vary.
The advantages include:
Chapter 18 – Performance Measurement to Support Business Strategy
Solutions to Problems
18–37. (30 min.) Core Assets and Capabilities
Answers will vary; however, core assets and capabilities should be both essential to the
Chapter 18 – Performance Measurement to Support Business Strategy
18–13
Various technology patents on
special shoe designs
Marketing skills
Network of capable manufacturers
Warehouses
Chapter 18 – Performance Measurement to Support Business Strategy
18–14
18–38. (30 min.) Balanced Scorecards and Strategy Maps: Hill Street Company.
a. Answers will vary. The measures in the financial perspective are reasonable, although
the company might want to add one specifically related to cost improvement (such as
growth in margins).
Chapter 18 – Performance Measurement to Support Business Strategy
18–15
18–39. (30 min.) Balanced Scorecards and Strategy Maps: Monroe Corporation.
a. Answers will vary. The measures in the financial perspective are reasonable, although
the company might want to include a measure on cost of quality (but this might be
better placed in the internal perspective).
18–40. (20 min.) Benchmarks: OfficeMax.
Answers will vary, but might include the following:
Number of customer complaints.
Chapter 18 – Performance Measurement to Support Business Strategy