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Question: maida corporation maida corporation manufactures various types of color laser...

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MAIDA CORPORATION

MAIDA Corporation manufactures various types of color laser printers in a highly automated facility with high fixed costs. The market for laser printers is competitive. The various color laser printers on the market are comparable in terms of features and price. MAIDA believes that satisfying customers with products of high quality at low costs is key to achieving its target profitability. For 2017, MAIDA plans to achieve higher quality and lower costs by improving yields and reducing defects in its manufacturing operations. MAIDA will train workers and encourage and empower them to take the necessary actions. Currently, a significant amount of MAIDA’s capacity is used to produce products that are defective and cannot be sold. MAIDA expects that higher yields will reduce the capacity that Lee needs to manufacture products. MAIDA does not anticipate that improving manufacturing will automatically lead to lower costs because MAIDA has high fixed costs. To reduce fixed costs per unit, MAIDA could lay off employees and sell equipment, or it could use the capacity to produce and sell more of its current products or improved models of its current products.

MAIDA’s balanced scorecard (initiatives omitted) for the just completed 2017 year follows:

      Objectives                          Measures                             Target Performance       Actual Performance

Financial Perspective

Increase shareholder value

Operating income changes from productivity improvements

Operating income changes from

$1,000,000

$1,500,000

$400,000

$600,000

Customer Perspective

Increase market share

Market share in color laser printers

5%

4.6%

Internal Business Process Perspective

Improve manufacturing quality

Reduce delivery time to customer

Yield

Order delivery time

82%

25 days

85%

22 days

Learning and Growth Perspective

Develop process skills

Enhance information systems capabilities

Percentage of employees trained in process and quality management

Percentage of manufacturing processes with real time feedback

90%

85%

92%

87%

REQUIRED:

Using the MAIDA’s balanced scorecard, was MAIDA successful in implementing its 2017 strategy? Explain.

Is MAIDA’s balanced scorecard useful in helping the company understand why it did not reach its target market share in 2017? If it is, why. If it is not, explain what other measures you might want to add under the customer perspective and why.

Would you have included some measure of employee satisfaction in the learning and growth perspective and new product development in the internal business process perspective? That is, do you think employee satisfaction and development of new products are critical for MAIDA to implement its strategy? Why or why not? Explain briefly.

What problems, if any, do you see in MAIDA improving quality and significantly downsizing to eliminate unused capacity?

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