Business and Financial Analysis Model Rev 230915

BU SIN E SS & FIN AN CIAL
ANALY SIS MODEL
Perspective of Business Practice

ValueStream Business Analysis Model
Value Creation
Activity/Condition V
a
l P
B
F e
Value Creation u M u A
i r
Resources e e s n
n f
a i a
a o
C s n l
n r
e y
r u c m
s
Value Creation Output e r s
i s
a
a e a n i
l c s
t s &
e
i
Value Creation o
Outcome n
Value CreationModel
Production
Activity/
Condition
Outcome
Support Firm
Activity/
Condition
Value
Output
Commercial
Activity/
Condition
Value CreationModel
Support Activity/
Condition
• Firm Infrastructure
• Human Resource
• Accounting
• Finance
• Legal
• Public Relation
Production Activity/ Commercial

Condition Activity/Condition
• R& D Output • Business Development
• Procurement • Marketing
• Production • Sales
• Quality Control • Delivery
• Inventory
Outcome • Collection
Management • Customer Service
Firm Value
Value Measures
Value Creation
Activity/ Value Creation
Condition Firm Value
Measures
Value Creation • Short Term

Resources Measures
• LongTerm
Measures
Value Creation • Financial Market Value
Output Measures Measures
• Non Financial
Measures
Value Creation • Social
Outcome Responsibility
Measures
Business & Financial Analysis
ValueCreation
Output
Business &
Financial Firm Value
• Efficiency
Performance
• Improvement
Analysis
• Change Response
• Compliance
• Strategic
Performance
• Market Price
Analysis
• Operational
Value Creation
Performance
Outcome
Analysis
• Financial
Performance
• Firm Reputation Analysis
• Firm Position in • Business Outlook
Competitive Market
• Firm Financial Wealth
ValueCreationActivityand Measurement Indicator
NO. ACTIVITY/CONDITION INDICATOR
1. Support Stream
1. 1. Firm Infrastructure
1.1.1 Physical Investment Ratio of Book Value of Fixed Asset to Total
Asset
1.1.2 Intellectual Capital Investment Ratio of Book Value of Intangible Asset to
Total Asset
1.1.3 IT Infrastructure Ratio of Business Operation Activity Facilitated
by IT System
1.1.4 Risk Management Weight of Risk Management Effectiveness
Score in the Performance Evaluation
1.1.5 Corporate Governance Corporate Governance Index/Ranking
1.1.6 Resources for Developing Firm a. System Development and Implementation
Infrastructure Expense
b. Ratio of System Development
and Implementation Expense to Sales
1. Support Stream
1. 2 Human Resources
1.2.1 Employee Productivity Sales Value per Employee
1.2.2 Utilization of EmployeeCapacity Average of Work Hour of Employee per Week
1.2.3 Employee Discipline Number of Disciplinary Action Given to

Employee
1.2.3 Effectiveness of Management Number of Audit Findings
1.2.4 Management Initiatives Number of Strategic Initiatives Taken by Top
Management
1.2.5 Management Coordination a. Number of Board Meetings
b. Number of Management Briefings
1. Support Stream
1. 2 Human Resources
1.2.6 Management Experience a. Average Number of Work Experience Year
of BOD andBOC
b. Average Number of Work Experience Year
of BOD and BOCin Current Position
1,2,8 Resources for Human Resource a. Human resource Expense

Management b. Ratio of Human resource Expense to Sales
1. Suppot Stream
1.3 Accounting
1.3.1 Quality of FinancialStatements Auditor Opinion on FinancialStatements
1.3.2 Timeliness of the Publication of Time Interval between Publication Date of

Financial Statements Financial Statements and Date of Book Year
End
1.3.3 Degree of Accounting Conservatism Index of Financial Statements
Policy Conservatism
1.3.4 Consistency in Accounting Policy Number of Changes in AccountingPolicy
1.3.5 Compliance to Financial Non-Compliance Notification Letter from
Reporting Regulation Financial Service Authority
1.3.6 Resources for a. Cost in Accounting System development
Accounting and Implementation
Activity b. Ratio of Cost in Accounting
System development and
Implementation to Sales
1. Support Stream
1.4 Finance
1.4.1 Management of Operational Ratio of Receivable Turn Over to Payable Turn
Cash Flow Over
1.4.2 Management of Ratio of Total Fixed Asset to Total Long Term
Investment Liability
Finance
1,4,3 Finance Reputation a. Company Bond Rating
b. Company Finance Health Index
1.4.4 Internally Generated Ratio of Dividend Declared to Net Profit
Fund Policy
1.4.5 Debt Payment Capacity Ratio of Cash Surplus from Operation to
Total Debt
1. Support Stream
1.4 Finance
1.4.6 Debt Management Ratio of Total Debt to TotalEquity
1.4.7 Currency Risk Exposure Ratio of Financial Obligation Denominated in
Foreign Currency not Covered by Hedging to
Total Asset
1.4.8 Resources for financing Activity a. Cost of Financing
b. Ratio of Cost Financing to Sales

1. Support Stream
1.5 Legal
1.5.1 Contract Compliance Number of Litigation Due to ContractDispute
1.5.2 Legal Reputation Ratio of Court Decisions or Out of Court

Settlements in Favor of the Company
1.5.3 Complianc to Rules and a. Number of Legal Cases Sued Against the
e Company by Customer
Regulation b. Number of Legal Cases Sued Against the
Company by Business Partner
c. Number of Penalty or Fined by Legal
Authority of Regulator
1.5.4 Protection of CompanyRights Number of Legal Cases Sued by Company
Against Third Party

1. Support Stream
1.5 Legal
1.5.5 Proper Legal Documentation of Ratio of Property Value not Properly and
Company Property Legally Documented to Total Property Value
1.5.6 Protection of Intellectual Capital Ratio of Number of Registered Patents to
Property Rights Total Number of Intellectual Capital Property
Rights
1.5.7 Resources for Legal Activity a. Legal Expense
b. Ratio of Legal Expense to Sales

1. Support Stream
1.6 Public Relation
1.6.1 Corporate Social Responsibility Percentage of CSRExpenditure to Net Profit
(CSR)Expenditure
1.6.2 Community Acceptance to Number of Complaints raised by Community
Company Business Activity to Company BusinessActivity
1.6.3 Involvement in Number of Company Sponsorship for
Community Community Activity
Activity
1.6.4 Environment Safety and Health Company Standing on Environment Safety and
Health Based on Report Issued by the Ministry
of Environment Safety andHealth

1. Support Stream
1.6 Public Relation
1.6.5 Product Safety a. Statement of Product Safety by Relevant
Authority
b. Acknowledgement of Product Safety
by Consumer Institution
1.6.6 Response to Negative Issues Number of Days Required to Clear and Solve
Negative Public Issues
1.6.7 Resources for Public Relation a. Public Relation expense
b. Ratio of Public Reltion Expense to Sales

2. Production Stream
2.1 R&D
2.1.1 Commitment to R&D Ratio of R&D Expenditure to Total Expenditure
2.1.2 R& DFacility Ratio of Total Value of R&D Facility to Total

Fixed Asset
2.1.3 R& DInitiatives Number of R& D Initiatives in the Making
2.1.4 R& DEffectiveness a. Number of Product Prototype that Results
b. Number of Product Designs that Proceed
to Production
c. Time Required to Complete Product
Design until Ready to Start Production
Process

2.1.5 R& DReputation a. Number of Company’s Registered Patents
b. Number of Research Articles Published in
Scientific/Professional Journal
2.1.6 R& DCollaboration Number of Research Collaborative
Agreements wit University/Research
Institution
2.1.7 Resources for R&D a. R& DExpense
b. Ratio of R& D Expense to Sales

2.2 Procurement
2.2.1 Procurement Planning a. Ratio of Procurement Value Supported by
Detail Plan to Total Procurement Value
b. Ratio of Rush Order Value to Total Order
Value
2.2.1 Procurement Process a. Number of Non Listed Vendor Awarded
Contract of Works/Services
b. Ratio of Procurement Value with Inter
Related Party to Total Procurement Value
c. Ratio of Procurement Value Decided
through Exceptional Procedures to Total
Procurement Value
2.2.3 Procurement Timeliness a. Ratio of Procurement Contract Delivered
on Time
b. Number of Production Disruption Dueto
Lack of Material
2.2 Procurement
2.2.4 Procurement Control a. Ratio of Undetected Under/Over
Spec Material Value to Total
Procurement Value
b. Ratio of Defect Material Value to Total
Procurement value
2.2.5 Purchase Price Ratio of Over/Under Budget of PurchasePrice

2.3 Production Process
2.3.1 Production Capacity a. Ratio of Actual Production to Production
Capacity
b. Ratio of Back Log Order to Total Order
2.3.2 Production Process Flow a. Number of Production Disruption
b. Average Days Required to Remove
Finished Goods From Production Facility
to Distribution Facility
2.3.3 Production Efficiency a. Ratio of Under/Over Material Expense
b. Ratio of Under/Over Labor Expense
c. Ratio of Under/Over Factory Overhead
Expense
d. Ratio of Wasted material Cost to Total
Material Expense
2.3.4 Resources for Production a. Cost of Goods Sold
b. Ratio of Cost of Goods Sold to sales
2.3 Production Process
2.3.4 Production Process Safety and a. Number of Accident in Production Facility
Health b. Number of Complaints Due to the
Pollution from Production Waste
c. Audit Report on Environment Safety and
Health
d. Number of Complaints and Notification
Letter Due to Hazardous and Banned
Material Found in the Product
2.3.5 Production Process Flexibility a. Number of Product Types Can Be
Processed in the Same Production Facility
b. Number of Quality Variance of a Product
Can Be Processed in the Same Production
Facility
c. Response Time to Adjust Production
Process Due to Changes in Product
Specification
d. Number of Minimum Order Required to
Run Production Process
2.4 Production Quality Control
2.4.1 Effectiveness of Quality Control a. Ratio of Product Defects to
Process Total Production
b. Ratio of Rejected/Returned Product
by Customer Due to Product Defect
2.4.2 Cost of Product Defect a. Ratio of Lost Due Cancellation or

Unrepeated Sales Order to Total Sales
b. Ratio of Production and Distribution Cost
of Product Defect to Total Production Cost
c. Product Reparation Cost
d. Litigation Cost or Penalty Cost Incurred
Due to Product Defect

2.5 Inventory Management
2.5.1 Warehouse Security a. Number of Embezzlement/TheftCase
b. Ratio of Production of Stolen Goods to Total
Production Cost
c. Unexplained Variance Between
Inventory Taking and
Inventory Record Data
2.5.2 Inventory Management Efficiency a. Ratio of Capacity Used to AvailableCapacity
b. Ratio of Warehouse Capacity to Production
Capacity
c. Average Inventory Turn Over
d. Under/Over Budget of Warehouse Facility
Maintenance Cost

2.5 Inventory Management
2.5.3 Flow of Goods a. Average Time Required to
Load/Unload Goods in the Warehouse
b. Inventory Turn Over
c. Average Dwelling Time of Goods in the
Warehouse
d. Percentage of Goods with Above Average
Dwelling Time
e. Cost of Damaged Goods Due to the Excess
of Above Average Dwelling Time
2.5.4 Resources for Warehousing a. Warehouse Expense
b. Ratio of Warehouse Expense to Sales
3. Commercial Stream
3.1 Business Development
3.1.1 Identification of a. Number of Market Survey
Business b. Number of Strategic Decision Based on
Opportunity and Market Target Market Survey Report
3.1.2 Business Network Development Number of Potential Business Partner
Contacted
3.1.3 Identification of LegalIssues Ratio of Business Partnership Agreements
Blocked by Regulatory Agency to Total number
Business Partnership Agreements
3.1.4 Identification of Environmental Business Partnership Agreements Blocked by
Issues Environmental Issues to Total number Business
Partnership Agreements
3.1.6 Business Deal Agreement a. Number of Business
and Maintenance Partnership Agreements
b. Number of BusinessPartners
3.1.7 Resources for Business Develop- a. Business Development Expense
ment b. Ratio of Business Development Expense to
Sales
3.2 Marketing
3.3.1 Identification of Targeted Number of Customer Behavior Survey/Study
Audience
3.2.2 Marketing Strategy Number of Marketing Policy/Initiative
Adjustments Based on Customer Behavior
Survey/Study
3.2.3 Penetration to New Market Number Sales Initiatives to Penetrate to New
Market
3.2.4 Maintaining ExistingMarket Number of Sales Initiative to Maintain Existing
Market
3.2.5 Market Share Position Market Share per Product
3.2.6 Resources for Marketing Activity a. Marketing Expense

b. Ratio of Marketing Expense to sales
NO. ACTIVITY/CO INDICATOR
N DITION
3.3 Sales
3.3.1 Sales Contact Number of Contacts Made by Sales Person to
Potential and Existing Customer
3.2.2 Sales Presentation a. Number Sales Presentation Made by Sales
Person to Potential and ExistingCustomer
b. Number of Sales Proposal Submitted to
Potential and Existing Customer
3.2.3 Sales Negotiation Ratio of Sales Proposals that Proceeds to

Sales Negotiations
3.2.4 Sales Deal a. Ratio of Sales Negotiations End Up in
Sales Contract
b. Total Sales
c. Sales by Market Segment
3.2.5 Resources for Sales Activity a. Sales Expense
b. Ratio of sales Expense to Sales
3.4 Delivery
3.4.1 Availabilit of Goods to be Sales Order Back Log
y
Delivered
3.4.2 Delivery Preparation a. Number of Days Required to ProcessSales
Order into Delivery Order
b. Time Between the Dates of Delivery Order
and Goods Transported to Customer
3.4.3 Delivery Execution a. Time between the Dates of
Goods Transported to and Received by
Customer
b. Transportation Cost
3.4.4 Delivery Safety a. Number Incidents During the Delivery of
Goods to Customer
b. Freight Insurance Cost
3.4.5 Resources for Delivery Activity a. Transportation Expense
b. Ratio of Transportation Expense to Sales
3.5 Collection
3.5.1 Receivables Turn Over a. Average Receivables
b. Ratio of Sales to AverageReceivables
3.5.2 Receivables Aging Schedule Composition of Receivables by Due Date

3.5.3 Allowance for BadDebt a. Amount of BadDebt
b. Ratio of Bad Debt to Sales
c. Bad Debt Expense
3.5.4 Receivables to Sales a. Rati of Average Receivables to Total Sales
3.6 Customer Service
3.6.1 Retaining Customer a. Number of Returning Customer
b. Total Repeat Orders
3.6.2 Expanding Customer a. Number of New Customer

b. Total New Sales Orders
3.6.3 Handling Customer Complaint Time between Complaint Received

and Responded
3.6.4 Satisfying Customer Customer Satisfaction Index
3..6.5 Resources for Customer Service a. Customer Service Expense
b. Ratio of Customer Expense to sales
PerformanceIndicator
1. Strategic Performance
1.1 Financial Performance
1.1.1 Sales a. Sales in Expanded Market
b. Sales of New Product
1.1.2 Cost Ratio of Cost Saving/Reduction
1.1.3 Capital Expenditure a. Ratio of Net Profit to Fixed Asset and

Intangible Asset
b. Ratio of Capital Expenditure to
Incremental Sales
c. Ratio of Retained Earnings to NetProfit
1.1.4 Margin a. Gross Margin in Expanded Market
b. Gross Margin of New Product

1.2 Internal Process
1.2.1 Response to a. Time Cycle from Business
Dynamic Opportunity Identification to Market
Changes Delivery
b. Ratio of Number of Strategic Policy Released to
Number of Identified Strategic Issues
c. Time Cycle from Strategic Policy Released to
Policy Implementation
d. Time Response for Business
Continuity Incidents
e. Time Response to Regulation Changes
1.2.2 Technology a. Number of TechnologyInnovation/Invention
Innovation b. Number of Newly Developed Product
/ Invention c. Number of Product Variation/Diversification

1.2 Internal Process
1.2.3 Business Process Innovation a. Number of Non Value Added Activities Cut
b. Ratio of Permanent Staff and Outsourced Staff
c. Percentage of Works Outsourced to Business
Partner
1.2.4 Internal Environment a. Turn Over Rate of Key Personnel
b. Employee Satisfaction Index

1.3 Customer Satisfaction
1.3.1 Educating Customer a. Number Menu Selection of Product /Service
Available for Customer
b. Sales Group Based on Selected Menu of
Product/Service
c. Frequent Question Asked By Customer
1.3.2 Entertaining Customer a. Number of Customer Care Program
b. Number of Special Offer for LoyalCustomer
c. Customer Satisfaction Index

1.4 Learning and Growth
1.4.1 Organizational Capability a. Number of organizational change
b. Transition time for organizationalchange
1.4.2 Business Capability a. Number of new product or new version of
product released
b. Time interval between the release of previous
and subsequent product
1.3.2 System capability Time Response to Strategic Initiative Change
1.3.3 Technology Capability Time Response to Technology Development
1. Operational Performance
1.1 Financial Performance
1.1.1 Sales a. Sales in Expanded Market
b. Sales of New Product
1.1.2 Cost Ratio of Cost Saving/Reduction
1.1.3 Capital Expenditure a. Ratio of Net Profit to Fixed Asset and

Intangible Asset
b. Ratio of Capital Expenditure to
Incremental Sales
c. Ratio of Retained Earnings to NetProfit
1.1.4 Margin a. Gross Margin in Expanded Market
b. Gross Margin of New Product

Business and Financial Analysis Model Rev 230915

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Business and Financial Analysis Model Rev 230915

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BU SIN E SS & FIN AN CIAL

ANALY SIS MODEL

Perspective of Business Practice

Production Activity/ Commercial

Value Creation • Short Term

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

1.2.3 Employee Discipline Number of Disciplinary Action Given to

NO. ACTIVITY/CONDITION INDICATOR

1,2,8 Resources for Human Resource a. Human resource Expense

NO. ACTIVITY/CONDITION INDICATOR

1.3.2 Timeliness of the Publication of Time Interval between Publication Date of

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

1.5.2 Legal Reputation Ratio of Court Decisions or Out of Court

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

2.1.2 R& DFacility Ratio of Total Value of R&D Facility to Total

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

2.4.2 Cost of Product Defect a. Ratio of Lost Due Cancellation or

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

3.2.6 Resources for Marketing Activity a. Marketing Expense

3.2.3 Sales Negotiation Ratio of Sales Proposals that Proceeds to

3.5.2 Receivables Aging Schedule Composition of Receivables by Due Date

3.6.2 Expanding Customer a. Number of New Customer

3.6.3 Handling Customer Complaint Time between Complaint Received

1.1.2 Cost Ratio of Cost Saving/Reduction

1.1.3 Capital Expenditure a. Ratio of Net Profit to Fixed Asset and

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

NO. ACTIVITY/CONDITION INDICATOR

1.1.2 Cost Ratio of Cost Saving/Reduction

1.1.3 Capital Expenditure a. Ratio of Net Profit to Fixed Asset and

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