Prescott 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 2011 and 2012 for its only product:

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

1. Compute the manufacturing cycle efficiency for an order for 2011 and 2012.
2. For each year 2011 and 2012, calculate the following:
a. Percentage of goods returned
b. Defective units reworked as a percentage of units shipped
c. Percentage of on- time deliveries
d. Percentage of hours spent by each employee on quality training
3. Evaluate management’s performance on quality and timeliness in 2011 and2012.

  • CreatedJanuary 15, 2015
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