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BALANCE SCORE CARD& JUST IN TIME

CONTENTS:SR. NO.TOPIC1Balance Scorecard2Why use Balance Scorecard3Perspective4Strategy Mapping 5Software6Just in Time7Objective8JIT Building Blocks9JIT as a Pull System10Advantages of JIT11Disadvantages of JIT

BALANCE SCORECARD:It is a management system designed to translate an organization's mission statement and overall business strategy into specific, quantifiable goals and to monitor the organization's performance in terms of achieving these goals.Was developed by Robert Kaplan and David Norton in 1992.Comprehensive approach that analyzes an organization's overall performance in four ways.

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WHY USE BALANCE SCORECARD:Businesses were based solely on financial measures.It may have worked in the past but it doesnt match today's pace of business.To provide a management system that was better at dealing with today's business pace and to provide business managers with the information they need to make better decisions, Kaplan and Norton developed the Balanced Scorecard.

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PERSPECTIVES:The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives:The Learning and Growth PerspectiveThe Business Process PerspectiveThe Customer PerspectiveThe Financial Perspective

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The Learning and Growth Perspective:

It includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement.

It also includes things like mentors and tutors within the organization, as well as that ease of communication among workers that allows them to readily get help on a problem when it is needed.

Technological tools, i.e. "high performance work systems are also included in this perspective.PERSPECTIVES:

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B. The Business Process Perspective:

Refers to internal business processes.

Metrics allows the managers to know how well their business is running, and whether its products and services conform to customer requirements.

Two kinds of business processes:Mission-Oriented ProcessesSupport ProcessesPERSPECTIVES:

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PERSPECTIVES:C. The Customer Perspective:

It is important to focus on customer and customer satisfaction.

Customers should be analyzed in terms of kinds of customers and the kinds of processes for which we are providing a product or service to those customer groups.

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PERSPECTIVES:D. The Financial Perspective:

As earlier, the financial aspect of the business should be considered.

Timely and accurate funding data will always be a priority, and managers will do whatever necessary to provide it.

There should not be given undue importance to the financial aspect of the business since there are other aspects too.

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STRATEGY MAPPING:Those are communication tools used to tell how value is created for the organization.

Shows connection between strategic objectives.

Reference: The Institute Way: Simplify Strategic Planning & Management with the Balanced Scorecard.

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Finance Customer Internal Process Organization Capacity

SOFTWARE:QuickScore Performance Information SystemBizzscoreQPR ScorecardSEM Balanced ScorecardRunyourcompanyNeXancePMErgometrics

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JUST IN TIME - JIT JIT is a Japanese management philosophy Applied in practice since early 1970s Father of JIT Taiichi Ohno Philosophy of JIT Inventory is defined to be wasteInventory is seen as incurring costs, or waste, instead of adding and storing value, contrary to traditional accountingRight Material, at Right Time, at Right Place, and in the Exact Amount

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Just InJUST IN TIME DEFINITION:The American Production and inventory Control Society (APICS) have defined JIT as follows:

A philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity.It encompasses the successful execution of all manufacturing activities required to produce a final product, from design engineering to delivery and including all stages of conversion from raw material onward.The primary elements include having only the required inventory when needed. To improve quality to reduce zero defects, to reduce lead time by reducing setup times, queue lengths and lot sizes, to incrementally revise the operations themselves and to accomplish these things at minimum cost.

Just InELIMINATION OF WASTE:JIT usually identifies seven prominent types of waste to be eliminated:Waste from OverproductionTransportation WasteProcessing WasteWaste from Product DefectsWaste from waiting/idle timeInventory WasteWaste of Motion

Just InJUST IN TIME OBJECTIVES:JIT is a philosophy of continuous improvement in which non-value-adding activities ( or wastes ) are identified and removed for the purpose of:Reducing CostImproving QualityImproving PerformanceImproving DeliveryAdding FlexibilityIncrease Innovativeness

Just InJIT BUILDING BLOCKS:

Just InJUST IN TIME AS PULL SYSTEM:Just in time is a pull system of production, so actual orders provide a signal for when a product should be manufactured.

Demand pull enables a firm to produce only what is required, in the correct quantity at the correct time.

Supplies are delivered right to the production line only when they are needed.

Just InADVANTAGES OF JIT: Lower stock holding means a reduction in storage space which saves rent and insurance costs. As stock is only obtained when it is needed, less working capital is tied up in stock There is less likelihood of stock perishing, becoming obsolete or out of date Avoids the build-up of unsold finished product that can occur with sudden changes in demand Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time

Just InDISADVANTAGES OF JIT: There is little room for mistakes as minimal stock is kept for re-working faulty product

Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed. There is no spare finished product available to meet unexpected orders, because all products are made to meet actual orders however, JIT is a very responsive method of production.

Just InTHANK YOU..!!!