Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quality control measures: Number of defects Number of warranty claims Number of customer complaints Material control measures: Purchase order lead time Scrap as a

image text in transcribed

Quality control measures: Number of defects Number of warranty claims Number of customer complaints Material control measures: Purchase order lead time Scrap as a percent of total cost Machine performance measures: Machine downtime as a percentage of availability Use as a percentage of availability Setup time (hours) Delivery performance measures: Throughput time Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries Month 1 2 3 4 202 180 141 99 63 56 47 44 119 113 96 75 8 days 7 days 5 days 4 days 2% 2% 3% 6% 3% 4% 4% 6% 95% 92% 89% 85% 8 10 11 12 22 ? ? ? ? ? 96% 222 ? ? ? 95% ? 222 22 ? ? 92% 89% The president has read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how they are computed. You have been asked to assist the company, and you have gathered the following data relating to these measures: Average per Month (in days) 1 2 3 4 Wait time per order before start of production 10.0 12.8 13.0 15.0 Inspection time per unit 0.9 0.8 0.8 0.8 Process time per unit 2.8 2.7 2.3 1.8 Queue time per unit 3.9 5.1 7.3 8.6 Move time per unit 0.4 0.6 0.6 0.8

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting Information for Decision-Making and Strategy Execution

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

6th Edition

137024975, 978-0137024971

More Books

Students also viewed these Accounting questions