Leming was pleased with the outcomes. Revenues had grown, and costs been reuced by at least as much as he had projected for the two-year period. Growth next yaer should be even greater as he was beginning to observe a fa able effect from the higher-quality products. Also, further quality costs reduction should materialize as incoming inspections were showing much higher-quality chased components.
Required
1. Identify the strategic objectives classified by balanced scorecard perspectives. Next, suggest measures for each objective. Classify the measures as lead or/// measures
2. Using the results from requirement 1, describe Leming’s strategy using sent if-then statements. Next, prepare a visual diagram of the strategy similar to /// one shown in exhibit 10-15 (although more complex).
3. Explain how you would evaluate the success of the quality-driven turnarounds strategy. What additional information would you like to have for this evaluated.
4. Explain why Leming felt that balanced scorecard would increase the like hood that the turnaround strategy would actually produce good financial outcomes.
5. The kaizen standard for rework was 6 percent of sales for 2003. Was the standard met? What would the maintenance standard be at the end of 2003? Describe the role for kaizen costing in leming’s strategy.
6. Of the quality activities listed in the 2004 report, which ones are nonvalue-added? By eliminating all nonvalue-added activities, how much further cost reduction is possible?