Question: For the past two years, Value Mobile has been working to improve the quality of its phones. Data for 2016 and 2017 follows (in thousands
For the past two years, Value Mobile has been working to improve the quality of its phones. Data for 2016 and 2017 follows (in thousands of phones):
| 2016 | 2017 | |
| Cell phones produced and shipped | 3819 | 16920 |
| Number of defective units shipped | 142 | 498 |
| Number of customer complaints | 234 | 383 |
| Units reworked before shipping | 185 | 867 |
| Manufacturing cycle time (days) | 17 | 19 |
| Average customer response time (days) | 33 | 31 |
| 2016 | 2017 | |
| Percentage of Defective Units Shipped | 3.7% | 2.9% |
| Customer complaints as a % of units shipped | 6.1% | 2.3% |
| Percentage of units reworked during production | 4.8% | 5.1% |
| Manufacturing cycle time as a percentage of total time from order to delivery | 34.0% | 38.0% |
Question:
From a Balanced Scorecard perspective, what performance measures should be used to incentivize managers? Explain why.
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