Nonfinancial measures of quality, manufacturing cycle efficiency. (CMA, adapted) Torrance Manufacturing evaluates the performance of its production

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Nonfinancial measures of quality, manufacturing cycle efficiency. (CMA, adapted) Torrance Manufacturing evaluates the performance of its production managers based on a variety of factors, including cost, quality, and cycle time. The following are nonfinancial measures for quality and time for 2010 and 2011 for its only product:

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The following information relates to the average amount of time needed to complete an order:

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Required1. Compute the manufacturing cycle efficiency for an order for 2010 and 2011.2. For each year 2010 and 2011, calculate the following:a. Percentage of goods returnedb. Defective units reworked as a percentage of units shippedc. Percentage of on-time deliveriesd. Percentage of hours spent by each employee on quality training3. Evaluate management's performance on quality and timeliness over the twoyears.

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Cost Accounting A Managerial Emphasis

ISBN: 978-0132109178

14th Edition

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

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