Dap Strategy Map and Balanced Scorecard Case Study 2 Mgmt 515

CASE STUDY MGMT515 Samuel O. Falola

STRATEGY STRATEGY MAP AND BALANCED BALANCE D SCORECARD AT DOMESTIC AUTO PARTS PARTS (DAP)  The strategy to realizing realizing the hanges re!uire" re!uire" at Domesti Auto Auto #arts #arts $DA#% &ill &ill in'ol'e the (ollo&ings) (ollo&ings) i. The *nanial +ers+eti'e ii. Customer #ers+eti'e iii. #roess #ers+eti'e i'. ,earning an" Gro&th #ers+eti'e

FINANCIAL PERSPECTIVE: PERSPECTIVE: 1. DA# sharehol"ers are the +arent om+any &hih they are su-si"iary o(. . The sharehol"ers e/+etation areas are)  The goal o( the the lea"ershi+ to hange the *nanial *nanial situation situation at DA# is to inrease inrease its 0 return on a+ital to ahie'e 1 &ithin  years. The om+any &ill (ous on t&o ma2or (ators here) +ro"uti'ity +ro"uti'ity an" gro&th. To ahie'e +ro"uti'ity goal3 the om+any &ill minimize total ost struture3 struture3 im+ro'e on the use o( a+ital assets -oth the urrent an" ne&3 an" inrease to+ line re'enue -y 54. There is no &ay to im+ro'e gro&th &ithout a+italizing on some o( the *nanial issues that are hin"ering the +ro*t maing a+a-ilities o( the om+any. Gro&th inreases re'enue3 to inrease re'enue at DA#3 ne& +ro"uts nee" to -e +ushe" out3 e!ui+ment u+gra"es an" ne& in'estments &ill -e re!uire".

Increase ROCE to !" Pro#$ct%&%t' Strate') Ma/imize the utilization o( e/isting assets an" re"ue ost &ithout limiting in'estment an" inrease to+ line re'enue -y 54 through inno'ation. Re&en$e Grot* Strate': 6ntro"ue ne& +ro"uts3 e!ui+ment u+gra"e3 intro"ution o( ne& +artners an" un"erstan"ing o( ustomers nee" an" -eoming inno'ators. The gro&th is reating reating o++ortunity (or more in'estment in'estmen t an" also (ousing on im+ro'ing the utilization o( asset -ase a+ital (rom o+erating on the 75 ol" assets to get to 04 utilization on an u+gra"e" asset -ase. CUSTOMER PERSPECTIVE 1. DA# ostumers are the 'arious "istri-utors arrying their +ro"uts . The ustomer &ants on time "eli'ery an" on s+e +ro"uts.

CASE STUDY MGMT515 Samuel O. Falola DA# nee" to un"erstan" &hat their ustomers &ant &hih an -e ahie'e" through ontinuous ommuniations an" seriously un"erstan"ing the ustomers nee". Customers atually &ant su+erior +ro"uts3 tehnology 8so+histiate" +ro"uts (rom DA#. Also DA# nee" to on'ine their ustomers that they are inno'ators &ith su+erior re+utations &ith an un-eata-le image. Customers nee" to no& ho& onsistent an" relia-le DA# +ro"uts are an" ho& they maintaine" their raning in the in"ustry. All these are usually an a""e" a"'antage (or those that arry the su++lier9s +ro"uts. DA# &ill reate 'alue (or its numerous ustomers through intimay. The om+any nee"s to reate ontinuous relationshi+ &ith the ey ustomers that are &ithin the 75 range that reate the 04 +ro*ts (or the om+any. DA# &ill reate ustomer9s +ro+osition through timely "eli'ery3 on s+e +ro"uts3 im+ro'e" +ro"uts3 ne& +ro"uts line3 an" ustomer ser'ie relationshi+ &ith 'alue re&ar"s. The more +ro*t the om+any maes the -etter it is (or them to i"enti(y its loyal ustomers an" -uil" goo" relationshi+ to retain this ustomer or mae them +artners.

PROCESSES PERSPECTIVE 1. Some o( the most im+ortant +roesses (or reating 'alue (or DA#9s sharehol"ers an" ustomers are  The +ro+er oor"ination o( Su++lier management Coor"ination o( manu(aturing management :e;e'aluating an" re;organizing o( the "eli'ery management Streamlining o( "istri-utions +roess to attrat strong -usiness +artners to retain +ro*ta-le ustomers :ee'aluate the +roe"ures (or +re'enti'e maintenane to era"iate e!ui+ment -rea"o&n Management o( su++lier9s +i+eline an" ra& materials #ro"uts im+ro'ement as an essential +art o( the +roess Ca+ital assets utilization . O-2eti'es an" measure (or +roess mentione" a-o'e)

Strate%c O+,ect%&e #ro"ut im+ro'ement Manu(aturing management Deli'ery management

Strate%c Meas$res 6nrease in :OCE U+gra"e" e!ui+ment an" researh +roess On time "eli'ery an" ustomers omment9

CASE STUDY MGMT515 Samuel O. Falola #re'enti'e maintenane Streamline o( "istri-ution +roess Su++lier management :a& material Assets

:e"ution o( unshe"ule" "o&ntime Cutting ost an" esta-lishing ey "istri-utors :e"ution in +ro"ut storage #ro+er utilization U+gra"e an" monitor eT? 1. DA# re!uires im+ro'ement in :@D "e+artment o( the om+any &hih is im+ortant to "e'elo+ing o( ne& +ro"uts an" im+ro'ing o( the ol" ones. This is essentially the heart o( the om+any9s inno'ation. The sill to "e'elo+ ne& +ro"uts3 maintain +re'enti'e maintenane3 streamline "istri-ution +roess3 an" (or the mareting "e+artment to &or more &ith the manu(aturing "e+artment in or"er to un"erstan" in "e+th a-out the ne& +ro"uts are the most essential at DA#. Seon"ly3 the om+any shoul" -e a-le to oor"inate the management +roesses in or"er to -ring +er(etion into the organization. . 6n the area o( human resoures it is im+ortant (or the DA# to no& ho& to inrease learning +roess an" (ailitates training &ithin the organization no matter ho& geogra+hially "is+erse" their em+loyees are. For suh a huge om+any &ith 'arious outlets3 it is im+ortant that ommuniation is the (oremost +riority (or the om+any to suee" in the area o( inno'ation. 6n(ormation tehnology +lays a ruial role in the manu(aturing in"ustry3 (or DA# to retain its raning there is nee" (or strong tehnology -agroun" (or manu(aturing om+any in automo-ile in"ustry. 6n(ormation tehnology shoul" not -e om+rise" (or any reason in the om+any. The 2ust in time tehnology shoul" -e taing a"'antage o( an" use -y the om+any. Alignment is im+ortant es+eially in an organization &here e'ery setor is e/+eriening "ierent hanges. Em+loyees nee" to -e oriente" an" traine" (or the ne& im+ro'ement an" the series o( hanges going on in the om+any.