The balanced scorecard logic in the management control and reporting of small business company networks: a case study

The purpose of this paper is to assess and integrate the application of the balance scorecard (BSC) logic into business networks identifying functions and use that such performance measuring tool may undertake for SME’s collaborative development. Thus, the paper analyses a successful case study regarding an Italian network of small companies, evaluating how the multidimensional perspective of BSC can support strategic and operational network management as well as communication of financial and extra financial performance to stakeholders. The study consists of a qualitative method, proposing the application of BSC model for business networks from international literature. Several meetings and interviews as well as triangulation with primary and secondary documents have been conducted. The case study allows to recognize how BSC network logic can play a fundamental role on defining network mission, supporting management control as well as measuring and reporting the intangible assets formation along the network development lifecycle. This is the first time application of a BSC integrated framework for business networks composed of SMEs. The case study demonstrates operational value of BSC for SME’s collaborative development and success

Bottleneck-based heuristic for three-machine flow shop scheduling

This paper considers a 3 machine flow shop (M1M2M3) with tendency of dominant (bottleneck) machine at M1. The developed bottleneck based heuristics from previous studies are considered in this case by Hezzeril (2010) and Irwan (2010), but were only tested for dominant machine at M2 and M3 respectively. The heuristics have successfully produced 67.24% of optimum solution at the middle process or M2 and 90.80% at the last process or M3 for 6 jobs problem. While for 10 jobs problem, the heuristics can produce 14.64% at M2 and 90.98% at M3. As an extension of this study, the bottleneck based heuristic scope is enlarged by developing a new heuristic for dominant machine at M1 and combining it with the previously developed heuristics for dominant machine at M2 and M3. The main objective is to develop scheduling heuristic to evaluate the performance at M1 based on bottleneck analysis for M1M2M3 flow shop and to combine with the developed heuristics from previous studies. The computer program involved were Microsoft Excel and Visual Basic for Applications (VBA) and the test of performance were conducted at 6 and 10 jobs problem. A simulated random data within specific limitation being assigned at each job’s processing time produces new recommended job arrangements. The generated makespan was compared with optimum makespan from complete enumeration and lower bound (LB) analysis. Total sets of 1000 simulated data at 6 and 10 jobs were allocated into 3 dominance level of P1DL; weak, medium, and strong. Optimal solutions were obtained based on the total results data that produce the ratio of 1. Based on the results, 62.40% of the solution generated is optimum result for 6 jobs while 56.33% of the solution generated equals to lower bound for 10 jobs. The heuristic performed moderately and decreased slightly when number of jobs increased, showing that BMM1 heuristic is more suitable for lesser number of jobs

Business strategy, environmental uncertainty, balanced scorecard and performance among Malaysian small and medium enterprises

The Balanced Scorecard (BSC) initially a tool for measuring performance is now recognised as an approach for strategy implementation. Based on literature reviewed, previous studies have mainly been carried out on the use of BSC in large businesses. However, research on its usage in small and medium size enterprises (SMEs) is very limited. Businesses must have a well-developed strategy to implement BSC, but SMEs tend to have poor strategic planning. Besides that, SMEs suffer from scarcity of financial resources and are vulnerable to external environment and cannot influence the market. Being responsive to the market is a positive characteristic for SMEs but this can be problematic when applying BSC, because changes in strategy due to market dynamism is one of the main causes of BSC failure. The objectives of this study are to discover how BSC implementation is affected by SMEs’ business strategy and environmental uncertainty, and to determine the influence of this relationship on SMEs’ performance. This study utilised the contingency theoretical framework to evaluate the relationship between SMEs’ strategy, environmental uncertainty, BSC implementation and SMEs’ performance. Moreover, the influence of financial resources as a component of internal environment on business strategy of SMEs was investigated based on resource-based theory. Data were collected from a survey among 300 Malaysian SMEs. Partial least squares (PLS) technique was employed to analyse the data. The findings indicated that BSC, as a strategy implementation system enhanced SME’s performance and its effectiveness was influenced by the SMEs’ business strategy. On the other hand, firms’ financial resources significantly influenced the business strategies of SMEs. Having access to adequate financial resources enabled SMEs to develop a clear business strategy. SMEs with a clearer organisational approach was more successful in BSC implementation and consequently had better performance. The results suggested that BSC implementation acts as a mediator between SMEs’ strategy and SMEs’ performance. Additionally, successful implementation of BSC depends on the level of environmental uncertainty. Based on the findings, a distinctive BSC should be designed to suit SMEs’ business strategy and market environment especially in developing countries such as Malaysia

Studiu privind posibilitatea implementarii balance scorecard-ului in universitati

Balanced Scorecard is a new control tool in public entities, especially in universities. The aim of this paper is to analyze the possibility of implementation in Romanian universities. At an international level, this concept was used at the beginning by the private sector, followed by its usage by the public sector as well. In universities of the Anglo – Saxon states, there have been debates on the subject for a long period of time in relation to the opportunity of introducing this concept; these debates have been supported by pro and against arguments. At a national level, this concept is virtually unknown in the higher education state institution system. Through the present paper, we would like to test the opportunity of introducing the concept starting from the identification at a global level of the conditions and regulations specific to the Balanced Scorecard (BSC) concept. Our results will present the first overview of this new subject, which is not yet developed in Romania.Balanced Scorecard Concept, Public University, Managerial Accounting

Design improvement of toner cartridge using design for assembly method

DFMA or known as Design for Manufacture and Assembly, consists of two main components which are Design for Manufacturing and Design for Assembly. To review the design for product evaluation, DFMA is an important methodolgy to be used. Reducing the number of parts to be assembled in a product is very significant. This can contribute to reducing the cost of assembly and assembly time for manufacturer. DFMA methodology is therefore applied to reduce the cost of the product by selecting a consumer product which is a toner cartridge as a case study of the product. The DFA Worksheet table is used for product evaluation and the original product design is reviewed, improved and re-evaluated. The significant result shows the new toner cartridge design is achievable with fewer parts from 32 to 27 parts. This method is also eligible for application to manufacturing industries to improve the effectiveness of their design

Optimizing of the Balanced Scorecard method for management of mining companies with the use of factor analysis

The managers of information age companies cannot rely merely on data derived from past activities of the company and focus on improving existing processes. They need a frame for measuring values that result from strategic goals of the company, a tool, which is focusing on obtaining information about company's current success, as well as finding new driving forces to ensure the future competitiveness of the company. Strategic business performance measurement system the Balanced Scorecard (BSC) is a suitable tool for improving the competitiveness of industrial companies. During its implementation, however, there is a conflict of perception of the importance of individual goals and measurable characteristics in partial perspectives of the BSC and its actual enforcement of the various strategic objectives in companies. The aim of this article is to verify the accuracy of BSC settings in an environment of selected companies in the Moravian-Silesian region with the emphasis placed on mining companies with the help of multidimensional statistics - factor analysis. The research took place in 2015 in cooperation with managers from the Moravian-Silesian Region (MSR), and it was divided into two kinds of research - quantitative and qualitative.Web of Science22444743

Governance tools for board members : adapting strategy maps and balanced scorecards for directorial action

The accountability of members of the board of directors of publicly traded companies has increased over years. Corresponding to these developments, there has been an inadequate advancement of tools and frameworks to help directorial functioning. This paper provides an argument for design of the Balanced Scorecard and Strategy Maps made available to the directors as a means of influencing, monitoring, controlling and assisting managerial action. This paper examines how the Balanced Scorecard and Strategy Maps could be modified and used for this purpose. The paper suggests incorporating Balanced Scorecards in the Internal Process perspective, ‘internal’ implying here not just ‘internal to the firm’, but also ‘internal to the inter-organizational system’. We recommend that other such factors be introduced separately under a new ‘perspective’ depending upon what the board wants to emphasize without creating any unwieldy proliferation of measures. Tracking the Strategy Map over time by the board of directors is a way for the board to take responsibility for the firm’s performance. The paper makes a distinction between action variables and monitoring variables. Monitoring variables are further divided on the basis of two considerations: a) whether results have been met or not and b) whether causative factors have met the expected levels of performance or not. Based on directorial responsibilities and accountability, we take another look at how the variables could be specified more completely and accurately with directorial recommendations for executives

Conceptual Foundations of the Balanced Scorecard

David Norton and I introduced the Balanced Scorecard in a 1992 Harvard Business Review article (Kaplan & Norton, 1992). The article was based on a multi-company research project to study performance measurement in companies whose intangible assets played a central role in value creation (Nolan Norton Institute, 1991). Norton and I believed that if companies were to improve the management of their intangible assets, they had to integrate the measurement of intangible assets into their management systems. After publication of the 1992 HBR article, several companies quickly adopted the Balanced Scorecard giving us deeper and broader insights into its power and potential. During the next 15 years, as it was adopted by thousands of private, public, and nonprofit enterprises around the world, we extended and broadened the concept into a management tool for describing, communicating and implementing strategy. This paper describes the roots and motivation for the original Balanced Scorecard article as well as the subsequent innovations that connected it to a larger management literature.

Teaching and learning of performance measurement in OR/MS degrees

A review of existing UK MS/OR undergraduate programmes was completed to assess the extent and nature of performance measurement teaching. In addition, a survey of performance measurement practitioners was undertaken to obtain views on what should be taught in relation to performance measurement. A survey of 23 undergraduate MS/OR degrees in the UK revealed that all the academic respondents supported the inclusion of PM teaching. However, only four distinct PM classes could be found amongst these degrees. The PM techniques taught were broadly similar although the wider context of PM was taught in only 2 of the classes. A survey of a small number of PM practitioners revealed that the Balanced Scorecard and Benchmarking were the two most commonly applied PM techniques with the majority of respondents learning about PM from personal experience and reading rather than through formal education. It appears that there is an opportunity for MS/OR teaching to make a major contribution to the development of PM as a discipline. However, academic respondents whose MS/OR degree course did not teach PM indicated that lack of staff expertise in PM combined with an already full syllabus were the main barriers to introducing a PM class