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CA Final · Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) · Strategic Cost & Performance Management

Case: Kaveri Auto Components Ltd (Pune) adopted a Balanced Scorecard. Its objectives are: (a) cut average order-to-delivery time from 12 days to 7 days, (b) raise on-time delivery to 98%, (c) lift employee training hours per head, (d) increase repeat-order revenue from existing OEM customers, (e) reduce scrap rate in machining. Which objective is correctly placed in the Learning and Growth perspective?

Lifting employee training hours per head belongs to the Learning and Growth perspective, because it builds human capability that drives future performance. Delivery time and scrap are internal process measures, while on-time delivery and repeat orders reflect the customer perspective.

  1. ACut order-to-delivery time from 12 days to 7 days
  2. BRaise on-time delivery to 98%
  3. CLift employee training hours per headCorrect
  4. DIncrease repeat-order revenue from existing OEM customers

Explanation

Learning and Growth covers people, skills, systems and culture that enable future performance. Training hours per employee is a capability measure. Delivery time and scrap relate to internal business processes, on-time delivery and repeat orders to the customer perspective.

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