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What performance measures should be used

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Question - For the past two years, Value Mobile has been working to improve the quality of its phones. Data for 2016 and 2017 follows (in thousands of phones):

 

2016

2017

Cell phones produced and shipped

3819

16920

Number of defective units shipped

142

498

Number of customer complaints

234

383

Units reworked before shipping

185

867

Manufacturing cycle time (days)

17

19

Average customer response time (days)

33

31

 

 

2016

2017

Percentage of Defective Units Shipped

3.7%

2.9%

Customer complaints as a % of units shipped

6.1%

2.3%

Percentage of units reworked during production

4.8%

5.1%

Manufacturing cycle time as a percentage of total time from order to delivery

34.0%

38.0%

Required - From a Balanced Scorecard perspective, what performance measures should be used to incentivize managers? Explain why.

Reference no: EM133106145

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