Question: Dan Foley s Pubs is a chain of brewpubs in the

Dan Foley’s Pubs is a chain of brewpubs in the Pacific Northwest. The company evaluates its managers on the basis of both financial and nonfinancial performance measures. One of the nonfinancial measures used is throughput to measure performance in the brewing division.
The following data pertain to the company’s brewpub in Federal Way, Washington:
Defective product rate .............. 4.00%
Total hours of value-added production time ..... 475,000
Total units produced during the period .......27,500,000 gallons

A. If manufacturing cycle efficiency was 95 percent, how many total production hours were used by Dan Foley’s Pubs?
B. What was the total throughput per hour?

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  • CreatedMarch 11, 2015
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