Question
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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