Transcript of Balance Score Card & Just In Time
- 1. BALANCE SCORE CARD & JUST IN TIME
- 2. GROUP MEMBERS GUNJAN BURGHATE 133 AJINKYA PALKAR 135
PRATHAMESH GAWANE 137 PRASHANSA MISHRA 139 NILESH POSAM 141
- 3. The Balanced Scorecards Emergence Robert Kaplan and David
Norton first publicized the balanced scorecard in a series of
journal articles and published this concept in their book, The
Balanced Scorecard. Since then it has evolved to become more
workable in practice, focusing more on design processes.
- 4. INTRODUCTION The balanced scorecard is a strategic planning
and management system used extensively in business and industry,
government, and nonprofit organizations improve internal and
external communications, and monitor organization performance
against strategic goals.
- 5. WHAT IS THE BALANCED SCORECARD (BSC)? The scorecard emerged
in response to organizations gap between short-term financial
activities and long-term strategy. It is not a replacement for
budgeting but merely a complement in the sense allows businesses to
set performance benchmarks in non-financial areas.
- 6. STRATEGY HUMAN RESOURCES BUSINESS UNITS EXECUTIVE TEAM
INFORMATION TECHNOLOGY BUDGETS AND CAPITAL INVESTMENTS The Balanced
Scorecard process allows an organization to align and focus all its
resources on its strategy Question: How can complex organizations
achieve results like this in such short periods of time? Answer:
Alignment!
- 7. WHAT IS THE BALANCED SCORECARD (BSC)? Performance standards
are specifically applied to four perspectives: 1. Finance 2.
Customer relations 3. Internal processes 4. learning and
growth.
- 8. WHAT IS THE BALANCED SCORECARD (BSC)? To ensure that both
short- term and long-term goals are correlated, the scorecard
relies on four processes: 1. Translating the vision 2.
Communicating and linking 3. Business planning 4. Feedback and
learning.
- 9. HOW IS THE BALANCED SCORECARD USED? Translating the vision:
helping all employees understand how their day-to-day work
contributes to long-term goals. Communicating and linking:
disseminating long- term goals both up and down an organizational
hierarchy, ensuring that both departmental and individuals
objectives are in alignment.
- 10. How is the Balanced Scorecard Used? Business planning:
taking long-term strategy and using it as the basis for how
resources and capital are allocated. Feedback and learning: the
scorecard enables strategic and real-time learning because it
measures daily performance and spending in the context of
overarching goals, allowing organizations to make necessary
changes.
- 11. Improve Shareholder Value Productivity Strategy Revenue
Growth Strategy Improve Cost Structure Increase Asset Utilization
Enhance Customer Value Create Value from New Products &
Services Human, Information, and Organizational Capital Shareholder
Value ROCE Cost per Unit Asset Turnover Customer Profitability New
Revenue Sources Price Financial Perspective: the drivers of
shareholder value Product/Service Attributes Strategic Competencies
Strategic Technologies Climate for Action (Processes that Produce
and Deliver Products & Services) (Processes that Enhance
Customer Value) Operations Theme Customer Management Theme
Innovation Theme Regulatory and Society Theme Customer Value
Proposition Quality Low Total Cost Customer Solutions Product
Leader Customer Satisfaction Customer Acquisition Customer
Retention Time Function Service Relations Brand Relationship Image
Market and Account Share Customer Perspective: the differentiating
value proposition Internal Perspective: how value is created and
sustained Learning & Growth Perspective: role for intangible
assets people, systems, climate and culture (Processes that Create
New Products and Services) (Processes that Improve the Environment
and Communities)
- 12. INTRODUCTION Just in time (JIT) is a production strategy
that strives to improve a business return on investment by reducing
in-process inventory and associated carrying costs. Implemented
correctly, JIT focuses on continuous improvement and can improve a
manufacturing organization's return on investment, quality, and
efficiency.
- 13. INTRODUCTION (contd) The philosophy of JIT is simple: the
storage of unused inventory is a waste of resources. JIT inventory
systems expose hidden cost of keeping inventory, and are therefore
not a simple solution for a company to adopt it.
- 14. Transaction cost approach Environmental concerns Price
change Quality volatility Demand stability Supply stability
Characteristics.
- 15. Vendor-managed inventory Customer-managed inventory
Business models following similar approach
- 16. A surprising effect of JIT was that car factory response
time fell to about a day. This improved customer satisfaction by
providing vehicles within a day or two of the minimum economic
shipping delay. Also, the factory began building many vehicles to
order, eliminating the risk they would not be sold. This improved
the company's return on equity. EFFECTS
- 17. The result was a factory that has been studied worldwide.
It has been widely emulated, but not always with the expected
results, as many firms fail to adopt the full system. The
just-in-time philosophy was also applied to other segments of the
supply chain in several types of industries.
- 18. Within a JIT system Within a raw material stream Oil
PROBLEMS
- 19. ELEMENTS OF JIT Stabilize and level the MPs with uniform
plant loading Reduce or eliminate setup times Reduce lot sizes
Reduce lead times Flexible work force
- 20. KANBAN Kanban was developed by Taiichi Ohno, at Toyota, to
find a system to improve and maintain a high level of production.
To meet JIT objectives, the process relies on signals or Kanban.
Kanban is a system to control the logistical chain from a
production point of view, and is not an inventory control system.
Kanban are usually 'tickets' but can be simple visual signals, such
as the presence of a part on a shelf.
- 21. EXAMPLES A type of JIT was used successfully in the UK by
Perkins to supply F3 engines to Ford from 1957 until 1964.
- 22. Applications Of Just-In-Time Toyota Toyota is considered by
many to be the poster child for JIT success. The Toyota production
strategy is highlighted by the fact that raw materials are not
brought to the production floor until an order is received and this
product is ready to be built. No parts are allowed at a node unless
they are required for the next node, or they are part of an
assembly for the next node
- 23. Dell Dell is able to provide exceptionally short lead times
to their customers, by forcing their suppliers to carry inventory
instead of carrying it themselves and then demanding (and
receiving) short lead times on components so that products can be
simply assembled by Dell quickly and then shipped to the customer.
Harley Davidson
- 24. Applications of Balance Score Card Shat-R-Shield Kenya Red
Cross Douglas County Government VEOLIA Water Etc
- 25. Conclusion Just-in-Time is an operational technique which
helps reduce the lead time which gives a higher return on
investment by reducing the in-process inventory costs and the
carrying cost of the inventory. Has helped many Companies worldwide
to reduce their inventory carrying costs and as a result add to the
profit margin.