Systems designed mainly to value inventory for financial and tax statements are not giving managers the accurate and timely information they need. Many companies have been relying too much on summary financial measures and have ignored the powerful opportunities for continual improvement that a well-constructed set of non-financial operating measures can give them” (Kaplan, 1988).Today’s powerful competition has been termed global competition (Kanter, 1995), with very few industries being unaffected by the term. This is based on the premise that the world is becoming a global shopping mall in which ideas and products are available everywhere at the same time. This puts the power of choice in the hands of customers, changing the terms of competition forever. To succeed, Kanter claims that companies need abundant stocks of three global assets – concepts, competence, and connections – which derive from investments in innovation, education, and collaboration.5:1Mission And StrategyThe company have a clearly developed mission and strategy. From a review of the business situation a mission and vision of the company was established. Our vision is: “To be a successful, competitive, best-in-class supplier”. The mission is: To be a world-class supplier of high quality, competitively priced manufactured products and engineering services. To continually improve our products and services, to satisfy our customers and make a profit. To prosper as a business to the benefit of our customers, shareholders and employees alike.The company derived a manufacturing strategy (Strategic Business Plan – Manufacturing Division), which has been developed to satisfy the mission statement. The strategy was based around four competitive priorities: Quality, Cost, Delivery, Skill, and Moral. Under each competitive priority a number of objectives were established. With careful consideration management c...
