Deck 22: Strategic Performance Management

Question 1

Hugh, SA., recently evaluated its manufacturing process and determined the following about its main product: $\begin{array}{lc}\text { Processing time } & 6 \text { minutes } \\\text { Move time } & 2 \text { minutes } \\\text { Inspection time } & 1 \text { minute } \\\text { Wait time } & 3 \text { minutes }\end{array}$ The manufacturing cycle efficiency (MCE) for the product is

A)1.00.
B)0.75.
C)0.67.
D)0.50.

Answer 1

0.50.

Question 2

____ are outcome measures that relate to customers.

A)Objective measures
B)External measures
C)Financial measures
D)Lag measures

Answer 2

B

Question 3

____ is creating better customer value for the same or lower cost than competitors or creating equivalent value for lower cost than offered by competitors.

A)Strategic decision making
B)Strategic cost management
C)Competitive advantage
D)Total product

Answer 3

C

Question 4

An example of a lag measure is

A)hours of employee training.
B)customer profitability.
C)employee capabilities.
D)none of the above.

Question 5

____ involves choosing among alternative strategies with the goal of selecting a strategy, or strategies, that provides a company with reasonable assurance of long-term growth and survival.

A)Strategic decision making
B)Strategic cost management
C)Competitive advantage
D)Customer value

Question 6

____ are outcome measures that are a result of past efforts.

A)Objective measures
B)External measures
C)Financial measures
D)Lag measures

Question 7

When a computer company increases the internal storage space for the same price, it is following a

A)focusing strategy.
B)low-cost strategy.
C)differentiation strategy.
D)strategic positioning strategy.

Question 8

____ are outcome measures that are expressed in monetary terms.

A)Objective measures
B)External measures
C)Financial measures
D)Lag measures

Question 9

When a computer company maintains the internal storage space for a lower price, it is following a

A)focusing strategy.
B)low-cost strategy.
C)differentiation strategy.
D)strategic positioning strategy.

Question 10

For a firm to have balanced measures, the measures selected must be balanced between

A)lag and lead measures.
B)objective and subjective measures.
C)financial and nonfinancial measures.
D)all of these.

Question 11

When a computer company selects a mix of strategies in order to create sustainable competitive advantage, it is following a

A)focusing strategy.
B)low-cost strategy.
C)differentiation strategy.
D)strategic positioning strategy.

Question 12

____ are relationships among activities that are performed with a firm's portion of the value chain.

A)External linkages
B)Internal linkages
C)Industrial value chain
D)Both a and b

Question 13

____ describe the relationships of a firm's value chain activities that are performed with its suppliers and customers.

A)External linkages
B)Internal linkages
C)Industrial value chain
D)Both a and b

Question 14

The five key core objectives of the customer perspective of the Balanced Scorecard do NOT include which of the following?

A)increase market share
B)increase customer satisfaction
C)increase customer retention
D)increase customer contact

Question 15

Richards, SA., manufactures a product that experiences the following activities: $\begin{array}{lr}\text { Processing (three departments) } & 9 \text { hours } \\\text { Moving (four moves) } & 1 \text { hours } \\\text { Waiting time } & 7 \text { hours } \\\text { Storage (before delivery) } & 13 \text { hours }\end{array}$ The manufacturing cycle efficiency (MCE) for the product is

A)0.48.
B)0.45.
C)0.42.
D)0.30.

Question 16

Hampton, SA., manufactures a product that experiences the following activities: $\begin{array}{ll}\text { Processing (three departments) } & 40 \text { hours } \\\text { Moving (four moves) } & 10 \text { hours } \\\text { Waiting time } & 30 \text { hours } \\\text { Storage (before delivery) } & 80 \text { hours }\end{array}$ The manufacturing cycle efficiency (MCE) for the product is

A)0.33.
B)0.27.
C)0.25.
D)0.18.

Question 17

____ are outcome measures that can be readily quantified and verified.

A)Objective measures
B)External measures
C)Financial measures
D)Lag measures

Question 18

When a computer company targets customers in the South, it is following a

A)focusing strategy.
B)low-cost strategy.
C)differentiation strategy.
D)strategic positioning strategy.

Question 19

The industrial value-chain analysis

A)recognizes only complex linkages within the firm.
B)is not compatible with differentiation strategies.
C)determines a linked set of value-creating activities.
D)requires a firm to operate across the entire value chain.

Question 20

____ is the use of cost data to develop and identify superior strategies that will produce a sustainable competitive advantage.

A)Strategic decision making
B)Strategic cost management
C)Competitive advantage
D)Customer value

Question 21

Which of the following is not a step in developing the Balanced Scorecard?

A)setting balanced objectives
B)outlining control procedures
C)setting target values
D)rewards

Question 22

Which of the following would be a lead measure?

A)customer profitability
B)cost per employee
C)return on investment
D)employee training hours

Question 23

____ provide some idea of what to expect currently or in the near future.

A)Trailing measures
B)Leading measures
C)Financial measures
D)All of the above

Question 24

Objectives for increasing revenue growth include

A)adopting a new pricing strategy.
B)reducing the cost per unit.
C)eliminating nonvalue-added activities.
D)reducing distribution channel cost.

Question 25

In the customer perspective, objectives and measures that drive the creation of customer value are

A)customer survey ratings.
B)postpurchase cost.
C)on-time deliveries.
D)all of the above.

Question 26

From the customer perspective, which of the following might be considered a core objective rather than a performance value?

A)decrease price
B)increase customer retention
C)improve image
D)improve product quality

Question 27

Roberts, SA., manufactures a product that experiences the following activities: $\begin{array}{lr}\text { Processing (three departments) } & 18 \text { hours } \\\text { Moving (four moves) } & 2 \text { hours } \\\text { Waiting time } & 14 \text { hours } \\\text { Storage time (before delivery) } & 26 \text { hours }\end{array}$

A)0.48.
B)0.45.
C)0.42.
D)0.30.

Question 28

Which of the following would be a lag measure?

A)budget forecasts
B)sales per employee
C)plant investment
D)employee training hours

Question 29

Which of the following statements about a balanced scorecard is true?

A)The balanced scorecard gives managers a perspective of the organization's performance using a recurring set of criteria.
B)The advantage of a balanced scorecard approach is that it can best be used as a single, comprehensive measure of corporate performance.
C)The advantage of a balanced scorecard approach is that it eliminates the need for management accounting data.
D)The advantage of a balanced scorecard approach is that it leads management to focus exclusively on critical downstream issues such as consumer demand, and away from lesser upstream issues such as design and production.