July 2019

Q3
a. The are many advantages of non-financial measurement, some of them are more
understandable and easier to relate to as at particularly at operational level in
manufacturing company. As the operational manager will be easier to understand if the
manufacturing makes a schedule of making 10 units cat in 1 week or give worker 10
hours of working hours per day. Rather than monthly variable overhead cost variances.
Next, they are more actionable as it is easier for operational manager to investigate the
sources of product defects and customer complaints than it is to investigate cost
variances, as defects and customers complaints relate directly to activities and operation
that they control in the manufacturing company. Next, this measurement may emphasis
strategy, as the manufacturing company business strategy I based on providing superior
customer service, it will make sense to measure the customers satisfaction. Lastly, this
measurement also can be the drivers o future financial performance as for example the
manufacturing manager may measure the quality of the product and customers
satisfaction as they believe that high performance in this area will improved financial
performance of the company.

As for the disadvantages is that it will bear time timelier as for the manager of the
company, they will need for time in collecting the data of the customers satisfaction and
the problem in products during the production as it is involved with many steps in the
production. and may make they need more in solving the problem.

b. 1- customer perspective as the specific customer objectives may focus on market or

sales performances achievement of customer objective may include measures of
customers satisfaction, customer profitability, market share and the number of new
customers, on-time delivery, the number of new products launched and the number of
products defects.
2- internal business process as the objectives is formulate for specific process that
contribute to achieving customers and financial objectives. The internal business
processes may be those in the areas of product design, operations, marketing, sales,
distribution and customer’s service. Performance measures are those designed to
monitor the internal processes that are critical to delivering product or services to the
customers and achieving financial objectives. They can include measures of cost,
product quality, and time-based measures of business processes. Long-term measures
may be created to monitor new product development or determine the changing needs
of customers.
3- the learning and growth focuses on the capabilities of the organization that must be
developed to achieve superior internal processes that create both customers value and
shareholders value. This perspective concentrates on the infrastructure that firms put
into place to deliver long terms growth and improvement. Performance measure may
focus on employee capabilities.
July 2020
B

Critical SF Non-Financial Reason

Performance Measure

Service quality  Customer  As the service is the way to

Satisfaction give satisfaction to the
customers of the product that
we provide to them, so we
need to increase the quality of
the service to make the
customers more satisfice
toward our products and this
will gain the future financial
performance. For example,
provide goods barber quality
service and they will eventually
come to our shop as the
service have met their
satisfaction.

Right People  Internal Quality  This job needs to be given to

Audits the right in order to maintain
the quality of our product as
this will help to maintain the
consumer satisfaction towards
our product.by doing a periodic
inspection. For example, a
phone manufacturing always
checking the functionality of
their phone before distribute to
the seller.

Innovation  Multiskilling  By giving the suitable training

and exposure to the employee
about the work part they need
to do and new technology
exposure will make the
employee became more
 innovative and creative as this
will be benefits to company in
the future. For example, giving
training of how to make an
Instagram live may make the
employee became more
creative in selling and
promoting the company
product. This will make the
company sales increase in the
future.

Resource  Stock Status  By making sure the balance of

utilisation the inventory will make the
budget and production of the
company will be more efficient
and this will make the
company will always satisfy
the production demand and
less costs if too much
inventory being keeps but not
in use. For example, the
production bread for daily is
100 units and the use of flour
for daily is 20 kg, so the
company just need to maintain
at the capacity to decrease the
cost of storage unless there is
increase in demand, so the
company can increase their
stock with the supplier.