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Prescott Manufacturing evaluates the performance of its production managers based on a variety of factors, including cost, quality, and cycle time. The following are nonfinancial

Prescott 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

20122012

and

20132013

for its only product:

Nonfinancial Quality Measures

2012

2013

Number of returned goods

775

890

Number of defective units reworked

2,300

1,940

Annual hours spent on quality training per employee

42

45

Number of units delivered on time

24,150

29,280

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Annual Totals

2012

2013

Units of finished goods shipped

29,920

30,650

Average total hours worked per employee

1,500

1,500

Time to Complete an Order

2012

2013

Wait time

From customer placing order to order being received by production

15

11

From order received by production to machine being set up for production

10

8

Inspection time

5

3

Process time

6

6

Move time

1

1

Compute the manufacturing cycle efficiency for an order for

20122012

and

20132013

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