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Hi My Dear tutor, I have a question.
In target costing section, there are functional analysis and value engineering which we can relate it as an attribute for the balance scorecard’s internal business process.
If internal business process aims to improve internal process such as manufacturing excellence.
value engineering investigates the functions which affect the cost of product but those functions are not valued by customers meaning reduction in the unnecessary cost.So value engineering can be considered as an attribute for MANUFACTURING EXCELLENCE.Functional analysis involves identifying the attributes or functions which are valued by customers and this can be considered as an element of TECHNOLOGICAL CAPABILITY
Both technological capability and manufacturing excellence are included in internal business efficiency.
Last bot not least, narrowing target cost gap such as mentioned below can also be included into INTERNAL BUSINESS PROCESS
reconsidering the design or reducing non-value added elements
reducing number of components and standardize components
outsource the output of production or support activities
using less expensive inputs or materials
employ a lower grade of staff on production
investment in new technologies
What do you think about it?Do you think is it relevant to mention it in the exam if it has been given?
In addition in building block model, there is a FLEXIBILITY and contain the following attributes:
Mix of different types of work done by employees-it means if there is high labor turnover dues to some issues that is why employees leave their job.
Speed in responding in customer request-how employees communicate with customers something like that?
What you have written is fine (although probably a bit too much in the first post 🙂 )
Questions on this in the exam generally involve a scenario and all the points to mention are in fact referred to in the question itself.
Have you watched my free lectures on both the Balanced Scorecard and on Fitzgerald and Moons’ Building Blocks?
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