Problem 1 (adapted)

The Cute Corporation produces small plastic dolls in its Florida manufacturing plant. The company is currently evaluating ways to improve productivity. The accountant of the firm's parent organization suggested that management implement a new compensation plan based on throughput performance measure as an incentive to increase productivity. To demonstrate how such a measure might work, the accountant gathered the following production data for a recent month:

Total units attempted 6,000,000

Good units manufactured 4,800,000

Processing time (total hours) 800

Value-added processing 600

Required:

1. How many defective units were produced?

2. Compute manufacturing cycle efficiency (MCE).

3. Compute process productivity.

4. Compute process quality yield.

5. Compute hourly throughput.