Consider the following information pertaining to the balanced scorecard of a company:
● A 500-hour increase in job-related training will (a) increase the average employee education level by
1 point on a 100-point scale, (b) reduce cycle time by 0.8 hours, and (c) decrease defective products by 0.3% points.
● A one-point increase in the average education level (on a 100-point scale) will (d) decrease average cycle time by 0.5 hours and (e) decrease defective products by 0.1% points.
● A 1% decrease in defective products will (f) decrease average cycle time by 1 hour and (g) increase on-time deliveries by 0.2%.
● A one-hour decrease in average cycle time will (h) increase on-time deliveries by 0.1% points.
● A 1% point increase in on-time deliveries will (i) increase retained customers by 0.7% points.
● A 1% point increase in retained customers will (j) increase the gross margin ratio by 0.3% points.
Required
(a) Express the cause-effect relationships among the different indicators visually.
(b) Would you expect the benefits of job related training to increase proportionately? For example, would
you expect the benefit of 50,000 hours of job-related training to be 100 times the impact of 500 hours of
training

Question

Consider the following information pertaining to the balanced scorecard of a company:
● A 500-hour increase in job-related training will (a) increase the average employee education level by
1 point on a 100-point scale, (b) reduce cycle time by 0.8 hours, and (c) decrease defective products by 0.3% points.
● A one-point increase in the average education level (on a 100-point scale) will (d) decrease average cycle time by 0.5 hours and (e) decrease defective products by 0.1% points.
● A 1% decrease in defective products will (f) decrease average cycle time by 1 hour and (g) increase on-time deliveries by 0.2%.
● A one-hour decrease in average cycle time will (h) increase on-time deliveries by 0.1% points.
● A 1% point increase in on-time deliveries will (i) increase retained customers by 0.7% points.
● A 1% point increase in retained customers will (j) increase the gross margin ratio by 0.3% points. 
Required 
(a) Express the cause-effect relationships among the different indicators visually.
(b) Would you expect the benefits of job related training to increase proportionately? For example, would
you expect the benefit of 50,000 hours of job-related training to be 100 times the impact of 500 hours of
training

Quizplus · Accepted Answer

The Answer of Consider the following information pertaining to the balanced scorecard of a company:
● A 500-hour increase in job-related training will (a) increase the average employee education level by
1 point on a 100-point scale, (b) reduce cycle time by 0.8 hours, and (c) decrease defective products by 0.3% points.
● A one-point increase in the average education level (on a 100-point scale) will (d) decrease average cycle time by 0.5 hours and (e) decrease defective products by 0.1% points.
● A 1% decrease in defective products will (f) decrease average cycle time by 1 hour and (g) increase on-time deliveries by 0.2%.
● A one-hour decrease in average cycle time will (h) increase on-time deliveries by 0.1% points.
● A 1% point increase in on-time deliveries will (i) increase retained customers by 0.7% points.
● A 1% point increase in retained customers will (j) increase the gross margin ratio by 0.3% points. 
Required 
(a) Express the cause-effect relationships among the different indicators visually.
(b) Would you expect the benefits of job related training to increase proportionately? For example, would
you expect the benefit of 50,000 hours of job-related training to be 100 times the impact of 500 hours of
training

Consider the Following Information Pertaining to the Balanced Scorecard of a Company