III.+Module+25000+Explanation+and+Examples


 * III. Module 25000 Explanation and Examples cli**

I. The similarities and the differences. II. The meaning and the characteristics of the Balanced Scorecard For example: Productive minutes available (per year):200,000 Annual conversion costs: $400,000 Actual velocity: 20 units per hour Actual cycle time=60 minutes/20units=3 minutes per unit Standard cost per minute=$400,000/200,000=$2 per minute Conversion cost per unit= $2*3= $6 per unit 4. Be familiar with Manufacturing Cycle Efficiency (MCE), in the concept of MCE, except the processing time, the time for doing other activities are the behavior of wasting time, so if the wasteful time could become zero, MCE will be equal to 1.0. For example: Actual velocity: 200 units per hour Move time: 30minutes Inspection time: 10minutes Waiting time: 10minutes Process time= 60minuts-30minutes-10minutes-10minutes=10minutes MCE= Process time/ (Process time+ Move time+ Inspection time+ Waiting time) =10/ (10+ 30+ 10+ 10) =0.17 III. Reflect the Balanced Scorecard into the strategy implementation. IV. Build up the strategic alignment The firms should make the employees get the information of the strategy and use the goals of the firm to direct their jobs, in addition, with using the measurements to evaluate the performance of employees, the firms should set the system of rewards and punishments to encourage the employees to implement the strategy in their jobs.
 * 1) In the part of responsibility assignments, both of the strategic-based responsibility accounting and the activity-based responsibility accounting focus on system wide efficiency, team accountability, financial perspective and process perspective, but the difference is that the strategic-based responsibility accounting pays attention to linking to strategy, customer perspective and learning and growth perspective.
 * 2) In the part of performance measures, the strategic-based responsibility accounting pays more attention on all the perceptions of the strategy instead of only focusing on the financial level.
 * 3) In the part of performance evaluation, both of the strategic-based responsibility accounting and the activity-based responsibility accounting concentrate the time reductions, quality improvements, cost reductions and trend measurements, but strategic-based responsibility accounting will also evaluate the expanded set of metrics and the stretch targets for all the four perceptions.
 * 4) In the part of rewards compared, both of the strategic-based responsibility accounting and the activity-based responsibility accounting will reward the employees with group rewards, salary increasing, promotion and bonuses, profit sharing and gain sharing, but the elements of evaluating the performance is different, the strategic-based responsibility accounting seems more strict.
 * 1) Balanced Scorecard explains the strategy into details and figures out what to do and how to do in the same time.
 * 2) Remember the four basic perspectives which are the financial perspective, the customer perspective, the internal business process perspective and the learning and growth perspective.
 * 3) Be familiar with two operational measures of responsiveness, which are cycle time and velocity.
 * 1) We should know that a group of important performance measures with special properties is the Balanced Scorecard and the performance measures should base on the strategy of the firm.
 * 2) With the reason that the Balanced Scorecard should be balanced between outcome and lead measures and scorecard measures should base on the cause-effect relationships, we will get the testable strategy.