1
ABEL BEKELE
YOSHI BUDIYANTO
SYLVAIN CROIZER
LINDA GOLABIEWSKI
JOSH JOHNSON
Team 5 – Day 7
Translating Vision and Strategy:
2 of 4 Perspectives
2
Source: Norton and Kaplan
Financial
Vision &
Strategy
Process
Managing Strategy: 4 Processes
3
Source: Norton and Kaplan
Translating
the Vision
Communic
ating
and
Linking
Balanced
Scorecard
Business
Planning
Feedback
and
Learning
Information Flow in Partnership
DELL
Demand
Mgmt &
Marketing
Demand
Mgmt &
Marketing
Orders &
Production
Request
Orders &
Production
Request
Production
Production
Suppliers
Western Digital
Source: Houghton et al
Customers
4
Data Highway for Manufacturer and System
Reseller
5
Supply Chain
Billing/
Shipping
WD
Data
Technology
Sharing
Profitability
Data Delivery Highway
Information
Sharing
Production
Status
Replenishment
Joint Product
Development
Source: Grean
and Shaw
Dell
Data
Strategy Map & Balanced Scorecard
6
Category
Key Strategic Objective
Financial
Increase shareholder
value by increasing
business and finance
plans
 Earnings per share
 Revenue and cost changes due to
partnership
 Units sold YTD
 Gross margin per SKU/product
line
Number of outstanding shares
Revenue to date
Units sold YTD
Fixed and variable costs
Price per unit sold YTD
Cost of BOM per unit
Cost of labor per unit
Financial
Exchanging immediate
and reliable revenue
information
 Financial transfer latency
 Overhead required for billing
and receipting
Day unit billed
Day payment received for unit
FTE in AR / AP / Returns
Financial
Increase cash flow and
reduce finance charges
through improved supply
chain management
• Finance charges on inventory
• Cash flow from sales
• Unit costs
• Plant productivity
• Raw material prices
• Orders
Inventory on hand
Short-term interest rates
Bank account balances
Cost of build of materials
Cost of labor
Number of units by product
Derived from: Turban, Sharda, Delen, & King
Metrics
Information Needed to
Measure
Strategy Map & Balanced Scorecard
7
Category
Key Strategic
Objective
Metrics
Information Needed to
Measure
Financial
On time delivery
and within
specifications
 Unplanned downtime
 Units produced per unit of labor
Hours of unplanned production
stops
Hours worked
Units produced per day
Financial
Reducing inventory
and transport costs
• Shipping costs
• Inventory on hand
• Number of delays per month
• Shipping latency
• Number of shipping locations/point of
sales
Days of inventory on hand (DOH)
Shipping cost per unit
Units on hand
Average number of days for
products to arrive at destination
once shipped
Number of locations
Financial
Increase visibility of
product through its
life cycle from parts
to assembly to
product returns
 Number of finished units on hand
 Amount of goods or units in midst
of production
 Yields
 Units ordered by product or
product line
Units on hand
Units on order
Batch results
Units in process
Derived from: Turban, Sharda, Delen, & King
Strategy Map & Balanced Scorecard
8
Category
Key Strategic
Objective
Metrics
Information Needed to
Measure
Internal
Process
Quick delivery of new
products to market
 Days to market for new products
 Orders for new product
 Gross margin per SKU
Production start date
Product delivery date
Order count by SKU
Price
Cost per unit
Internal
Process
Provide high quality
and reduce waste by
uncovering root causes
of product failures at
the source
 Yield
Counts of yield
Defective units
Units passing SPT
Units being tested in SPT at any given
time
Number of functional SPT stations
Internal
Process
React more quickly to
changes needed in
manufacturing
 Downtime to retool between products
 Latency measures
Estimated finished product batch times
Actual finished product batch times
Average production down-time
Mins/Hrs needed to resume production
Internal
Process
Integrate information so that WDDell can manage cross-enterprise
processes in a more efficient way
to improve product manufacturing,
forecasting and planning through
shared information
• Days of inventory available
• Units of inventory on hand
• Number of units demanded as
forecast
Production time on a per unit basis
Inventory turns
Average number of days that the
finished units sit before being shipped
Derived from: Turban, Sharda, Delen, & King
 Percent defective per batch
 Units passing SPT
Dependencies / Relationships
9




For the metric “days to market for new products from inception
to delivery”, the sooner a new product is released and sold
into the marketplace, the more likely both Dell and WD are
able to compete successfully in the technology space, and the
sooner revenue can grow.
Yield, defect, downtime to retool between products and
unplanned downtime per month metrics, strongly affect unit
costs and productivity growth, as poorly manufactured units
count against productivity metrics.
On-time delivery to Dell affects cash flow from sales.
All metrics describing levels of inventory affect finance charges
on inventory, including the
product mix in inventory.
Dependencies / Relationships
10




Percent of joint development in product mix will also reflect
inventory levels, as a product created without enough input from
Dell may not get the orders needed to keep inventory levels
down, or worse, a particular product could be over-produced
and sit in the inventory longer than average.
A higher number of shipping locations will affect shipping costs,
as the complexity increases with the number of locations that
product has to be shipped to.
Raw material prices affect unit costs.
SPT utilization affects overall plant productivity, unit costs and
cash flow.
Dependencies / Relationships
11
Plant productivity
Yield
Defect
Net unit costs
Units manufactured per unit of labor
Shipping latency
Amount of goods in production
Cash flow from sales
Gross margin per SKU
WD Inventory levels
Dell inventory levels
Inventory turns
The number
of units that
pass the SPT
affects
12
Q&A
13
Enhanced Supply Chain
14
Source: Houghton et al