After six months of using a balanced scorecard to monitor operations, Chad Davis, C&C Sports' vice president for operations, was very disappointed in the metrics in the learning and growth perspective shown below.

The company was not even close to meeting the stated goals of any metric, and Chad realized that significant changes concerning the labor force were needed if any improvements were to be made.
Because of the seasonal nature of C&C's sales (see Exhibit 5-5) and the way Chad hires direct labor workers, he might employ as many as 75 workers during the busiest times of the year (November and December) and as few as 10 workers during the slowest times of the year (summer months). In fact, only 10 employees are guaranteed work all year long. Those 10 employees have the lowest turnover, the highest level of satisfaction, and can produce all three products.

Review Unit 5.2 to understand the current rationale for the seasonal production schedule.
What trade-offs will be required if senior management determines that the current learning and growth measures are necessary to generate improvement in operations and increase netincome?

  • CreatedFebruary 21, 2014
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