(Throughput) Fernando Sanchez is concerned about the quantity of goods being produced by the Mexican Division of the Auto Products Company. The follow¬ ing production data are available for April 1997:

CHAPTER 21 Measuring Long-Run Organizational Performance 991 Total units completed 30,000 Total good units completed 26,400 Total value-added hours of processing time 12,000 Total hours of division time 19,000 Determine each of the following for this division for April.

a. What is the manufacturing cycle efficiency?

b. What is the process productivity?

c. What is the process quality yield?

d. What is the total throughput per hour?

e. If Fernando can eliminate 20 percent of the non-value-added time, how would throughput per hour for these data differ?

f. If Fernando can increase quality output to a yield of 94 percent and eliminate 20 percent of the non-value-added time, how would throughput per hour for these data differ?

g. Flow would Fernando determine how the non-value-added time was being spent in the division? What suggestions do you have for Fernando to de¬ crease non-value-added time and increase yield?

h. If only 22,500 of the units produced in April had been sold, would your answers to any of the above questions differ? If so, how? If not, why not?