419056 The Application of Balanced Scorecards in Paper Manufacture

Monday, November 9, 2015: 3:45 PM
Deer Valley I/II (Salt Lake Marriott Downtown at City Creek)
Virgilio L. Gonzalez, GB Consultores 75, C.A., Caracas, Venezuela

The Application of Balanced Scorecards in Paper manufacture

AIChE Annual meeting. Salt Lake City. Nov. 8-13, 2015

Virgilio L. Gonzalez, PhD    

E-mail: gbconsult75@gmail.com



The Balanced Scorecard (BSC) was created more than fifteen years ago by economists Robert Kaplan and David Norton, and is finding applications in industrial practice.  This management tool consists of a chart showing four perspectives with related indicators, which are Financial, Customer, Internal processes and Learning and Innovation.  The application of this scorecard is shown in some case studies within the Paper industry in three South American developing countries.

The proposed BSC related to Paper manufacture is shown below.

BALANCED SCORECARD – Paper Manufacture


Strategic Objectives



• Capital utilization

• Cost reduction

• Sales increase


• % Cost raw materials

• % Machinery renovation


• Satisfaction

• Profitability

• Retention

• % Satisfaction/production      type

•% Sales/customer

•% Faithful customers

Internal Process

• Innovation

• Operational process      

• Aftersales service          

• % Improvement operational logistics

• % Plant stoppages

• % Product devolutions

Innovating and learning

• Employment Capacity   

• Emp. Competitiveness 

• Emp. Satisfaction         

• Info Systems capacity

• Productivity

• % Training

• % Employee Satisfaction

• Competence level per Employee


















Different from bulk chemicals manufacture, where there may be low profitability, from a Financial point of view, Cost savings seem to be as important as sales increases.  Additionally, Paper companies should consider capital utilization as a driving force because of ecological pressure and customer needs. 

Customer perspective seems to be more relevant in Special papers making because of fashion changes and the need to make differentiated products to compete with Far East manufactured goods.  Paper buyers seem to be more of a captive market, although marketing activities have to be pursued. E.g. special quality papers.

Effective internal processes need to be considered in all company categories but can be more critical in Paper industries because they depend on punctual demands, e.g change of fashion or eventual need of special poducts, school activities.  Some paper industries depend on agricultural production, although the tendency is to use recycle paper in most cases.

Finally, Learning and Innovation appear to be more relevant in the making of most products innovating to be more friendly to the environment than in technology itself, particularly in the use of raw materials and waste products.

The systematic application of Balanced Scorecards can contribute to  better  management  and to  make  reasonable decisions about what   to  do   next  to   keep  business  alive  in  spite  of  current limitations, mainly  where  there  are  foreign currency exchange control regulations.

In  conclusion, the  knowledge  and  development  of  Balanced Scorecards can definitely help project managers and directors to have a global vision of a company through its basic perspectives, motivating that  projects  in their different  stages keep alive and operationally efficient.

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See more of this Session: Applied Project Management Fundamentals
See more of this Group/Topical: Management Division