Question

Ramsey Motors manufacturers water (hydrogen) powered automobiles. The company committed to producing 500,000 vehicles last year, but ended up only manufacturing half of that. The issue is with a part that splits water into hydrogen and oxygen in a process known as electrolysis. The part was supposed to be installed using an automated process, but the machines are having trouble doing this, so factory workers have to do it manually on the assembly line, causing delays. Use the balanced scorecard to evaluate this situation. Which perspective is most closely related to these manufacturing issues? Define the perspective and explain how it can be used to measure Ramsey’s performance.

Answer 1

Ramsey Motors manufacturer faced issues with the internal business process, here, due to faulty machine; parts were not installed using the automated process. Factory workers had to install the same manually on the assembly line and that situation further caused delay. Here, balanced scorecard is considered as management system and it is more than just measurement system, through this system, we set, implement and track various important business strategies and objectives. There are total four legs of the balance scorecard. These are customer scorecard, internal business process scorecard, financial scorecard and Knowledge, education and growth scorecard.

Here, the perspective - internal business process scorecard is most closely related to these manufacturing issues.

Now let me define this perspective, here, we will use balanced scorecard and under the leg - internal business process of this balanced score card, we will measure various critical factors and necessary processes that are crucial to meet the customer’s requirements.

We can measure Ramsey’s performance using internal business scorecard, here, we will set several goals like improving manufacturing performance and excellence, make system capable with technology, under the goal like improving manufacturing performance and excellence, we will measure several things like how is cycle time of the process? What about the unit cost of the process and how we are getting the yield?, same way under the goal like making system capable with technology we will measure entire map of the manufacturing units and whether this unit is meeting the competing standards or not? Through this measure we can understand that how Ramsey manufacturer is performing considering its only internal business process.