1. 1. BALANCE SCORE CARD & JUST IN TIME
2. 2. GROUP MEMBERS GUNJAN BURGHATE 133 AJINKYA PALKAR 135 PRATHAMESH GAWANE 137 PRASHANSA MISHRA 139 NILESH POSAM 141
3. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 14. Transaction cost approach Environmental concerns Price change Quality volatility Demand stability Supply stability Characteristics.
15. 15. Vendor-managed inventory Customer-managed inventory Business models following similar approach
16. 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. 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. 18. Within a JIT system Within a raw material stream Oil PROBLEMS
19. 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. 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. 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. 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. 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. 24. Applications of Balance Score Card Shat-R-Shield Kenya Red Cross Douglas County Government VEOLIA Water Etc
25. 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.