Management at Lantana Inc. has decided to begin using through-put as a divisional performance measure. The Carolina Division is a job shop that carefully crafts furniture to customer specifications. The following first quarter information is available for the division:
Good units started, completed, and sold ....... 98,400
Total units completed .............. 104,500
Total value- added hours of processing time ..... 15,160
Total hours of divisional time ........... 25,000
a. What is the division’s manufacturing cycle efficiency? (Round to one decimal point.)
b. What is the division’s process productivity? (Round to one decimal point.)
c. What is the division’s process quality yield? (Round to one decimal point.)
d. What is the total hourly throughput? ( Round to one decimal point.)
e. Discuss whether throughput is as useful a performance measurement in a job shop as in an automated plant. Why would you expect process quality yield to be high in a job shop? Why might a job shop such as Carolina Division have a low manufacturing cycle efficiency?