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9. Benson Manufacturing evaluates the performance of its production managers based on a variety of factors, including cost, quality, and cycle time. The following are
9.
Benson Manufacturing evaluates the performance of its production managers based on a variety of factors, including cost, quality, and cycle time. The following are nonfinancial measures for quality and time for 2016 and 2017 for its only product: E (Click the icon to view the nonfinancial measures and annual totals.) The following information relates to the average amount of time needed to complete an order: (Click the icon to view the time to complete an order.) Read the requirements. Requirement 1. Compute the manufacturing cycle efficiency for an order for 2016 and 2017. (Round the answer to two decimal places.) The manufacturing cycle efficiency for an order for 2016 is The manufacturing cycle efficiency for an order for 2017 is Requirement 2. For each year 2016 and 2017, calculate the a. percentage of goods returned, b. defective units reworked as a percentage of units shipped, c. percentage of on-time deliveries, and d. percentage of hours spent by each employee on quality training. (Round the percentages to two decimal places.) Start by calculating the percentage of good returned for 2016 and 2017. Non-financial quality measure 2016 2017 % % a. Percentage of goods returned b. Defective units reworked as a percentage of units shipped % % c. Percentage of on-time deliveries % % d. Percentage of hours spent by each employee on quality training % % Requirement 3. Evaluate management's performance on quality and timeliness in 2016 and 2017. Benson has become efficient in its value-added manufacturing time as a percentage of manufacturing cycle time. The company improved the company's lead time. This efficiency will result in for the company as well as customer satisfaction. Management has had a(n) in the total number of defective units reworked, which is a over the prior year. Also, the company spent amount of time per employee on quality training, leading to - Data Table 2016 2017 750 1,040 Nonfinancial Quality Measures Number of returned goods Number of defective units reworked Annual hours spent on quality training per employee Number of units delivered on time 1,900 1,840 42 43 26,140 34,500 Annual Totals 2016 2017 29,920 37,280 Units of finished goods shipped Average total hours worked per employee 2,000 2,000 - X Data Table 2016 2017 13 12 Time to Complete an Order Wait time From customer placing order to order being received by production From order received by production to machine being set up for production Inspection time Process time 11 9 6 2 5 5 Move time 7 7
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