AFM203 Chapter Notes - Chapter 7: Balanced Scorecard, Lead Time, Cash Flow
Document Summary
Innovation and learning perspective: time to develop next generation, process time to maturity, how do we look to shareholder, financial perspective, cash flow, quarterly sales growth, market share and roe. Balanced scorecard minimizes information overload by limiting the number of measures used. Balanced scorecard meets several managerial needs: brings together, in a single management report, the different elements of a company"s competitive agenda, becoming customer oriented, shortening response time. Improving quality: emphasizing teamwork, reducing new product launch times, managing for the long term, guards against sub optimization, consider all important operational measures to see if improvement in one area may be achieved at the expense of another. Customer perspective: how a company is performing from its customers" perspective is a priority for top management, translate general mission statement on customer service into specific factors. Lead time measures the time required for the company to meet its customers" needs.