Justin Fawber is a divisional manager within Monmouth GPS Guidance Systems. Haas is concerned about the amount of the division’s production. The following production data are available for April 2013:
Total units completed ............. 1,023,000
Total good units completed and sold ....... 838,860
Total value-added hours of processing time ... 18,600
Total hours of processing time ........ 62,000
Determine each of the following for this division for April.
a. What is the manufacturing cycle efficiency?
b. What is the process productivity?
c. What is the process quality yield?
d. What is the total throughput per hour? (Round to one decimal point.)
e. If only 660,000 of the units produced in April had been sold, would your answers to any of the preceding questions differ? If so, how? If not, why not? (Round to one decimal point.)
f. If Fawber can eliminate 20 percent of the NVA time, how would throughput per hour for these data differ? (Round to one decimal point.)
g. If Fawber can increase quality output to a yield of 90 percent and eliminate 20 percent of the NVA time, how would throughput per hour for these data differ? (Round to one decimal point.)
h. How would Fawber determine how the NVA time was being spent in the division? What suggestions do you have for decreasing NVA time and increasing yield?