Barnes Boards (BB) is a skateboard manufacturer that markets its products directly to customers online. At the
Question:
Barnes Boards (BB) is a skateboard manufacturer that markets its products directly to customers online. At the end of 2021, BB tried to improve its competitive position within the electric longboard market by implementing a combination of revenue-increasing and cost-saving initiatives. That is, BB wanted to become a lower-cost producer of longboards while also taking action to increase revenues. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, BB implemented ideas related to JIT production, total quality management, and activity-based management. Now (after 2 years), the CEO of BB wants to assess the impact of the changes. The following information has been collected (all related to electric longboards).
| 2021 | 2023 | |
| Theoretical annual capacity* | 249,600 | 249,600 |
| Actual production** | 208,000 | 234,000 |
| Market size (in units) | 1,300,000 | 1,300,000 |
| Production hours available (40 workers) | 104,000 | 104,000 |
| Very satisfied customers | 83,200 | 140,400 |
| Actual cost per unit | $325 | $260 |
| Days of inventory | 15.6 | 7.8 |
| # of defective units | 13,000 | 5,200 |
| Total worker suggestions | 104 | 312 |
| Hours of training | 260 | 1,040 |
| Selling price per unit | $315 | $315 |
| # of new customers | 5,200 | 26,000 |
*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. In Microsoft Word or Excel, create a table that communicates the following.
- All of the measures listed below
- actual velocity and cycle time (2021 and 2023)
- Percentage of total revenue from new customers (2021 and 2023) (assume one unit per customer)
- Percentage of very satisfied customers (2021 and 2023) (assume each customer purchases one unit)
- Market share (2021 and 2023)
- Percentage change in actual product cost (2023 only)
- Percentage change in days of inventory (2023 only)
- Defective units as a percentage of total units produced (2021 and 2023)
- Total hours of training
- Suggestions per production worker
- Total revenue
- Number of new customers
- For each measure, identify a likely strategic objective (assume there is one measure per objective)
- For each measure, identify the related Balanced Scorecard perspective
2. Express BB's strategy as a series of if-then statements.
3. Prepare a strategy map that illustrates the relationships among the likely strategic objectives.
Expert Answer:
Table Measure 2021 2023 Percentage Change Strategic Objective Balanced Scorecard Perspective Actual Velocity 208000 units 234000 units 125 Increase production Operations Actual Cycle Time 156 days 78 ... View the full answer
