Question
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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