At the end of 2008, Activo Company implemented a low-cost strategy to improve its competitive position. Its

Question:

At the end of 2008, Activo Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Activo undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Activo wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered:

*Amount that could be produced given the available production hours; everything produced is sold.
**Amount that was produced given the available production hours.

Required:
1. Compute the following measures for 2008 and 2010 (except for e. and f., which are for the two-year period):
a. Actual velocity and cycle time
b. Percentage of total revenue from new customers (assume each customer purchases one unit)
c. Percentage of total revenue from very satisfied customers (assume each customer purchases one unit)
d. Market share
e Percentage change in actual product cost over the period
f. Percentage change in days of inventory over the period
g. Defective units as a percentage of total units produced
h. Total hours of training
i. Suggestions per production worker
j. Total revenue
k. Number of new customers
2. For the measures listed in Requirement 1, list likely strategic objectives, classified according to the four Balance Scorecard perspectives. Assume there is one measure perobjective.