Management at Southeast Crafts has decided to begin using throughput as a divisional performance measure. The Durham

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Management at Southeast Crafts has decided to begin using throughput as a divisional performance measure. The Durham Division is a job shop that carefully crafts furniture to customer specifications. The following first quarter information is available for the division:

Good units started, completed, and sold ............ 98,400

Total units completed .......................................... 104,448

Total value-added hours of processing time ...... 15,360

Total hours of divisional time ............................... 24,000

a. What is the division’s manufacturing cycle efficiency?

b. What is the division’s process productivity?

c. What is the division’s process quality yield?

d. What is the total hourly throughput?

e. Discuss whether throughput is as useful a performance measurement in a job shop as in an automated plant. Why would you expect process quality yield to be high in a job shop? Why might a job shop such as Durham Division have a low manufacturing cycle efficiency?

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Ankush Holkar

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Cost Accounting Foundations and Evolutions

ISBN: 978-1111626822

8th Edition

Authors: Michael R. Kinney, Cecily A. Raiborn

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Question Posted: Jul 17, 2012 05:43 AM

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Management at Southeast Crafts has decided to begin using throughput as a divisional performance measure. The Durham

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a MCE Valueadded time Total time 15360 24000 64 b Process productivity Total units Valueadded time 1...View the full answer

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