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JEEVA ELLAPILLAI (ZP02534)

BALANCE SCORECARD - VARIANCE ANALYSIS

INTERNAL BUSINESS PERSPECTIVE


GOALS

MEASURE

TIMELINESS OF D
QUALITY

CARE IN HANDLING

0% DEFECT FREE

MARKETING EFFE
OPERATION

CAPACITY UTILIZ

ANALITHICAL REVIEW:
1. Above is our budgeted Balance scorecard for FYE Dec 2015. We based on this four ma
2. Our financial analysis basicaly on financial ratios and variance analysis.
3. Besides that, Master Trading is also give same important to non financial perspective
4. In financial growth we focussed in profitability and increase penetration. Below are so

Budgeted
Qty
('000)
Quantity Variance

SALES
Carpet Tiles
Mosaic Tiles
Granite Tiles

Price Variance

1440
390
170

Budgeted
PRICE PER UNIT
RM

SALES
Carpet Tiles
Mosaic Tiles
Granite Tiles

10
20
30

Qt & Price Variance - Revenue(RM)


Budgeted
SALES
('000)

Total sales
Carpet Tiles
Mosaic Tiles
Granite Tiles

14400
7800
5100

5. Based on the above calculation, there is variance of -5% in quantity of mosaic tiles a
view to the business to ensure enough stock and increased sales throughout the year. T
6. The variance of price is 0% for all the tiles. This is proves that internal business grow
7. Reported that Revenue of mosaic tiles 5% decrese @ variance of RM 400K tiles. This m
8. In internal business growth aspects, Master Trading also focussing 0% defect free rate
9. Besides that, from the balance scorecard analysis the company may emphasize the im

COMPARISON REVIEW:

1. Variance analysis is usually associated with a manufacturer's product costs. In this setting

between a manufacturer's 1) standard costs of the inputs that should have occurred for
2. To illustrate, let's assume that a company manufactured 10,000 units of product (outp
3. A common variance analysis will divide the $8,000 into a price variance and a quantit
4. Variance analysis for manufacturing overhead costs is more complicated than the var
5. Balance scorecard of the manufacturing and services company also will be diferent in

ROLE PLAY REVIEW - OPERATION MANAGER:

1. The balanced scorecard includes financial measures that tell the results of act

those financial measures with three sets of operational measures having to do with cust
2. Many companies already have myriad operational and physical measures for local act
when scorecards measures, on the other hand, are grounded in an organizations strate
3. This balanced set of measures both reveals the trade-offs that managers have alread

MASTE

FINANCIAL PE
GOALS

FINANCIAL GROWTH

ESS PERSPECTIVE
MEASURES
TIMELINESS OF DELIVERY
CARE IN HANDLING PARCELS
0% DEFECT FREE RATE
MARKETING EFFEICIENCY
CAPACITY UTILIZATION

CUSTOMER PE
GOALS

SATISFYING THE CUSTOMER

SATISFYING THE CUSTOMER

2015. We based on this four main perspective in evaluating performance of company for the entire year.
ariance analysis.
ant to non financial perspective which actually lead to our business growth directly and indirectly. This includ
ease penetration. Below are some variance analysis of our company:-

Actual

Variance
Qty
('000)

Variance
%

Qty
('000)

1530
370
180

Actual
Variance
PRICE PER UNIT
RM

90
-20
10

Actual
SALES
('000)

15300
7400
5400

Variance
%

PRICE
RM

10
20
30

6
-5
6

0
0
0

Variance
SALES
('000)

0
0
0

Variance
%

900
-400
300

6
-5
6

5% in quantity of mosaic tiles and increase of 6% in both carpet and granite tiles. This is very important
ed sales throughout the year. This is where we want to achieve minimum 10% profit growth
ves that internal business growth and successful hardwork of sales and marketing team
ariance of RM 400K tiles. This means operation team have to take note on marketing the particular tiles.
o focussing 0% defect free rate and timeliness delivery and which indirectly increase the satisfactionary lev
company may emphasize the important and capacity to expand their business by inventing new packeging o

rer's product costs. In this setting, variance analysis attempts to identify the causes of the differences

that should have occurred for the actual products it manufactured, and 2) the actual costs of the inputs use
ed 10,000 units of product (output). The company's standards indicate that it should have used $40,000 of m
o a price variance and a quantity variance. The price variance identifies whether the company paid too much
more complicated than the variance analysis for materials. However, the variance analysis of manufacturing
ompany also will be diferent in the analysed items as per their nature of business.

es that tell the results of actions already taken. And it complements

measures having to do with customer satisfaction, internal processes, and the organizations ability to learn an
physical measures for local activities. But these local measures are bottom-up and derived from ad hoc proc
nded in an organizations strategic objectives and competitive demands. And, by requiring managers to selec
offs that managers have already made among performance measures and encourages them to achieve their

MASTER TRADING
BALANCE SCORECARD FOR FYE DEC 2015

FINANCIAL PERSPECTIVE
GOALS

MEASURES
MINIMUM PROFIT GROWTH OF10%
GROSS MARGIN GROWTH

INANCIAL GROWTH
RETURN ON INVESTENT (ROI)
RETURN ON ASSETS (ROA)

VISION AND
STRATEGY

CUSTOMER PERSPECTIVE
GOALS

SFYING THE CUSTOMER

MEASURES

CUSTOMER SATISFACTION SURVEY


NUMBER OF CUSTOMER COMPLSINT PER MONTH

SFYING THE CUSTOMER


NUMBER OF RETURNED PRODUCTS

of company for the entire year.

h directly and indirectly. This includes customer, internal business growth and learning and growth index.

te tiles. This is very important


m 10% profit growth as per our budgeted balance scorecard.
marketing team (internal business growth - marketing effieciency).
n marketing the particular tiles.
ctly increase the satisfactionary level of customer.
iness by inventing new packeging of tiles products.

auses of the differences

2) the actual costs of the inputs used for the actual products manufactured.
at it should have used $40,000 of materials (an input), but it actually used $48,000 of materials. This unfavor
hether the company paid too much for each unit of input. (Perhaps it paid more per pound of the input than
variance analysis of manufacturing overhead costs is very important as manufacturing overhead costs have
business.

the organizations ability to learn and improvethe activities that drive future financial performance.
m-up and derived from ad hoc processes. As an operation manager it is helpful that
And, by requiring managers to select a limited number of critical indicators within each of the four perspectiv
d encourages them to achieve their goals in the future without making trade-offs among key success factors.

LEARNING AND GROWTH PERSPECTIVE


GOALS

NUMBER OF PARTICIPATING
CONTINUING EDUCATION PR
MOTIVATED AND PREPARED EMPLOYEES

NUMBER OF REQUIRED TRA

NEW SERVICES
INNOVATIVE SERVICES

CUSTOMER

nd growth index.

terials. This unfavorable variance needs to be analyzed.


nd of the input than it had planned.)
verhead costs have become a very large percentage of a product's costs.

erformance.

f the four perspectives, the scorecard helps focus this strategic vision.
key success factors.

H PERSPECTIVE
MEASURES

NUMBER OF PARTICIPATING AND VOLUNTARY


ONTINUING EDUCATION PROGRAMME

NUMBER OF REQUIRED TRAINING TO EMPLOYEE

NEW SERVICES AND PRODUCTS INTRODUCED


CUSTOMER SUGGESTIONS ADDOPTED