Bottle Industry Balance Scorecard

Objectives Key Performance Indicators Targets Initiatives

1. Financial
Perspective
Increase
shareholders
value by
maximizing
profitability
through
productivity gains

Track expenses: There are two ways to boost profits: sell more and spend
less. To spend less, you need to know where your money is going. Analyzing
your spending enables you to identify the best saving potential.
Calculated Product Turnover Ratio: For most businesses, however, the
turnover ratio is a good measure of how well you are matching demand with
supply. Divide the cost of your goods by your average inventory. If the resulting
number is large, it means you are doing a good job of selling your products
shortly after they are made. If it is small, it means your products are spending a
lot of time in warehouses. You may be able to boost your profits by more
effectively judging demand.
Improve operating cycle: Receivables, inventory and payables - in the
operating cycle, they are analyzed from the perspective of how well the
company is managing these critical operational capital assets, as opposed to
their impact on cash.
Reduce 5%


Increase
10%
transportati
on and
delivery to
markets

Reduce
manufacturi
ng cost by
5%
Increase Market share
Increase Revenue growth
Increase Sales revenue
Control over overhead
costs
Use economies of scale
Use optimal utilization of
resources
Reduce wastage

2. Customer
Perspective
Meet specified
customer delivery
times





Improve
customer
satisfaction
Lead Time reduction: The most effective way for businesses to reduce stock is
by reducing the supply lead-time. Lead time can be defined as the time it takes
from when you first determine a need for a product until it arrives on your
doorstep. If lead time was zero, inventory could be zero.
Short inventory lead time: A short inventory lead time can provide an
advantage. In fact, trends have indicated that quality and delivery often surpass
costs in terms of customers values. And of course, a long and drawn out lead
time means an overabundance of inventories, expedition costs, excessive
overtime pay, and inefficient use of resources.
Focus on measuring customer satisfaction: A customer feedback survey is the
best way to find out how satisfied your customers are, find ways to improve
your product or service, and identify customer advocates who really love your
product.
Build customer loyalty to increase customer satisfaction: Loyal customers
are those who are getting the products and services they desire. They are
customers who believe these products and services are superior to those of the
competition. Ideally, they are customers who view their interactions as more
than simply transactional.
Build customer feedback system: Establish sound processes for addressing
customer issues. Take care of issues as quickly and effectively as possible. If a
Reduce
lead time
by 10%

Improve
customer
delivery by
10%

Reduce
customer
complaints
20%






Increase capacity
Add more valuable
resources
Strengthen the
supply chain
network
Identify the less
worthy steps and
eliminate them
Take timely
customer feedback
Address customer
issues immediately
Build a customer
loyalty ladder
Enforce customer
quality products and
zero defect product
cycle.
Ask special
solution will take longer than anticipated, provide frequent updates so
customers know the status of the situation.

Improve
customer
service by
20%
customer
requirements.

Learning and
Perspective

Align employees
and organization
goals
Employee engagement: Managers and the entire executive team should be a
part of the system to help each employee set goalthereby, fully engaging your
workforce and encouraging everyone across the company to focus and
successfully achieve these goals together. By including all members of the
company, the stage is set for each employee to feel a greater sense of loyalty and
commitment to the company and to perform at higher levels. Engaged
employees not only plan to stick aroundhelping to lower your recruiting
costsbut they are also enthused and motivated to impact your bottom line.
During difficult times their energy and effort can help your organization not
simply survive, but thrive.
SMART: Establish S.M.A.R.T. goals, increase goal visibility and align employees
across the company. Specific goals let people know exactly what's expected of
them with no room for misinterpretation. Specific goals should be able to
answer the following:
Who is responsible?
When must this be done?
What is to be accomplished?
Which requirements/constraints are involved?
Where is this to be completed?
Why is this important or beneficial?
Introduce Shared work culture: By cascading and aligning goals across
multiple employees, you can create a corporate atmosphere of shared
responsibility that will drive the success of your company. An automated
performance management solution can greatly simplify the task of establishing
these shared goals and help keep your entire organization working together
toward the same objectives.
Employee
retention
increase
5%

Reduce 5%
employee
turnover

Increase
employee
loyalty 5%
Increase employee
morale
Enforce employee
retention strategies
Enforce employee
development
programs
Increase daily
engagement
Improve
performance
accountability
More
efficient employee
review process
Timely
communication
Assign mentors to
teams
Enforce team work



Internal processes
Improve
manufacturing
quality and
productivity
Improved operational efficiency: In order to improve
operational efficiency, one has to start by measuring it. Since
operational efficiency is about the output to input ratio, it
should be measured both on the input and the output side.
Quite often, company management is measuring primarily
on the input side, e.g. the unit production cost or the man
hours required to produce one unit. Even though important,
input indicators like the unit production cost should not be
Reduce
wastage by
3%


Reduce
breakdown
Optimum utilization
of resources
Quality checks
Ensure minimal
wastage
Enforce new
technology
Enforce best
seen as sole indicators of operational efficiency.

Quality control and improvements: Quality control
emphasizes testing of products to uncover defects and
reporting to management who make the decision to allow or
deny product release, whereas quality assurance attempts to
improve and stabilize production (and associated processes)
to avoid, or at least minimize, issues which led to the
defect(s) in the first place.

Quality Assurance: Quality Assurance (QA) is a way of
preventing mistakes or defects in manufactured products
and avoiding problems when delivering solutions or services
to customers. QA is applied to physical products in pre-
production to verify what will be made meets specifications
and requirements, and during manufacturing production
runs by validating lot samples meet specified quality
controls. QA is also applied to software to verify that
features and functionality meet business objectives, and that
code is relatively bug free prior to shipping or releasing new
software products and versions.

Introduce updated technology: Whenever you replace
machinery that has become obsolete or ineffective, it's
disruptive to workersand that results in low productivity.
You can minimize or eliminate such disruptions by carefully
determining short- and long-term business objectives and
the carefully mapping technology solutions to those
objectives.


Manufacturing process management: It is a collection of
technologies and methods used to define how products are
to be manufactured. MPM is used to plan the ordering of
materials and other resources; set manufacturing schedules,
and compiles cost data.
of
machinery
by 10%


Reduce
defective
products
by 10%

Improve
quality
10%

Achieve
100%
product
safety and
usage


production methods
Check know-how
and inspection of
machinery
Immediate
replacement of
machinery in case of
breakdown
Ensure quality raw
material
Ensure best industry
standards
Enforce best
product design
standards
Acquire best raw
material and
machinery