Jill Haas is a divisional manager within Tulsa GPS Guidance Systems. Haas is concerned about the amount

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Jill Haas is a divisional manager within Tulsa GPS Guidance Systems. Haas is concerned about the amount of the division’s production. The following production data are available for April 2010:

Total units completed ...........846,720

Total good units completed and sold .....719,712

Total value-added hours of processing time .... 15,680

Total hours of processing time .......... 56,000

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 only 560,000 of the units produced in April had been sold, would your answers to any of the preceding questions differ? If so, how? If not, why not?

f. If Haas can eliminate 20 percent of the NVA time, how would throughput per hour for these data differ?

g. If Haas can increase quality output to a yield of 90 percent and eliminate 20 percent of the NVA time, how would throughput per hour for these data differ?

h. How would Haas determine how the NVA time was being spent in the division?

What suggestions do you have for decreasing NVA time and increasing yield?


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Cost Accounting Foundations and Evolutions

ISBN: 978-1111626822

8th Edition

Authors: Michael R. Kinney, Cecily A. Raiborn

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