AnaCarolina and Jaco, executive managers at Duke Manufacturing, are tasked with determining appropriate performance metrics for
the customer perspective of Duke's balanced scorecard. Which of the following is the best metric for this situation? a. number of returns due to incorrect products shipped in response to ordersb. operating throughoutc. return on investmentd. material price variance
a. number of returns due to incorrect products shipped in response to orders.
Explanation:
AnaCarolina and Jaco, executive managers at Duke Manufacturing can use the number of returns due to incorrect products shipped in response to orders to determine appropriate performance metrics for the customer perspective of Duke's balanced scorecard.
The defective units in the production line will give a performance metrics with respect to customer's order.
Balance score card is a strategic tools with four perspectives namely financial , customers , learning & growth and internal process.
The customer perspective addresses targeting customers and evaluating the performance of the business in respect to the customers.
The metrics used in this perspective should be good enough to measure how satisfied the customers are .The best of the given options for this purpose is the number of returned goods due to incorrect product shipped in response to an order
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In contract manufacturing the goods are produced by a firm under a brand name of other firm on the basis of the contract. The contract manufacturers sign contracts with more than one firm to produce the goods. This type of manufacturing is mostly used in international markets due to availability of cheap labor and materials used for production in manufacturing countries.
For some of the products the contract manufacturers even provide the service of designing, distributing, assembly and manufacturing. the regulations for production also less in these countries. Contract manufacturers are found mostly in developing countries.
