Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 42

The following are critical success factors for Dell Inc.

• Product manufacturing time.

• Customer perception of order-taking convenience and accuracy.

• Revenue growth.

• Selling expense to sales ratio.

• Number of new manufacturing processes developed.

• Order processing time.

• Raw materials inventory.

• Training dollars per employee.

• Number of emerging technologies evaluated.

• Customer retention.

• Manufacturing defects.

• Number of new manufacturing processes under development.

• Customer satisfaction with speed of service.

• Gross margin.

• Operating cost ratio.

Required

1. Using the four BSC perspectives of learning and growth, internal processes, customer, and financial, sort these CSFs into the appropriate perspective.

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2. Create a simple strategy map for Dell Inc.

Step 1 of 2

1.? The following BSC was adapted from Peter Brewer, “Putting Strategy into the Balanced Scorecard,” Strategic Finance, January 2002, pp44-52.

Learning and Growth •?Training dollars per employee •?Number of emerging technologies evaluated •?Number of new manufacturing processes developed •?Number of new manufacturing processes under development

•        Internal Processes •?Product manufacturing time •?Raw materials inventory •?Order processing time •?Manufacturing defects

Customer •?customer perception of order taking convenience and accuracy •?customer perception of product quality •?customer retention •?customer satisfaction with speed of service

Financial Perspective •?revenue growth •?gross margin •?operating cost ratio •?selling expense to sales ratio