(Throughput) Miguel Prieto manages the Springfield Division of Wilson Cor¬ poration. Prieto is concerned about the amount of the division’s production. The following production data are available for April 2006:

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?

e. If only 280,000 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?

f. If Prieto can eliminate 20 percent of the non-value-added time, how would throughput per hour for these data differ?
g. If Prieto can increase quality output to a yield of 90 percent and elimi¬ nate 20 percent of the non-value-added time, how would throughput per hour for these data differ?
h. How would Prieto determine how the non-value-added time was being spent in the division? What suggestions do you have to decrease non¬ value-added time and increase yield?

Transcribed Image Text:

Total units completed 423,360 Total good units completed and sold 359,856 Total value-added hours of processing time 15,680 Total hours of processing time 56,000