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At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in

At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Mejorar undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Mejorar wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered:

20x1 20x3
Theoretical annual capacity* 249,600 249,600
Actual production** 208,000 234,000
Market size (in units sold) 1,300,000 1,300,000
Production hours available (40 workers) 104,000 104,000
Very satisfied customers 62,400 140,400
Actual cost per unit $320 $256
Days of inventory 14 7
Number of defective units 14,560 7,020
Total worker suggestions 80 280
Hours of training 260 1,040
Selling price per unit $190 $190
Number of new customers 5,200 25,740

*Amount that could be produced given the available production hours; everything produced is sold. **Amount that was produced given the available production hours.

Required:

1. Compute the following measures for 20x1 and 20x3:

a. Actual velocity and cycle time. If required, round your answers to two decimal places.

20x1 20x3
Actual velocity fill in the blank 1 per hour fill in the blank 2 per hour
Actual cycle time fill in the blank 3 minutes fill in the blank 4 minutes

b. Percentage of total revenue from new customers (assume one unit per customer). Round your percentage answer to one decimal place (for example, enter 4.628% as "4.6").

20x1 fill in the blank 5 %
20x3 fill in the blank 6 %

c. Percentage of very satisfied customers (assume each customer purchases one unit).

20x1 fill in the blank 7 %
20x3 fill in the blank 8 %

d. Market share.

20x1 fill in the blank 9 %
20x3 fill in the blank 10 %

e. Percentage change in actual product cost (for 20x3 only). Enter a decrease as a negative value.

20x3 fill in the blank 11 %

f. Percentage change in days of inventory (for 20x3 only). Enter a decrease as a negative value.

20x3 fill in the blank 12 %

g. Defective units as a percentage of total units produced. Round your answers to two decimal places (for example, enter 4.628% as "4.63").

20x1 fill in the blank 13 %
20x3 fill in the blank 14 %

h. Total hours of training.

20x1 fill in the blank 15 hours
20x3 fill in the blank 16 hours

i. Suggestions per production worker. Round your answers to one decimal place.

20x1 fill in the blank 17 per production worker
20x3 fill in the blank 18 per production worker

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