Question: Exeter Corporation has recently begun a continuous improvement campaign. As a consequence, there have been many changes in operating procedures. Progress has been slow, particularly

Exeter Corporation has recently begun a continuous improvement campaign. As a consequence, there have been many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory. Management has been gathering the following data over the past four months:

The president has attended conferences at which the importance of throughput time, manufacturing cycle efficiency, and delivery cycle time were stressed, but no one at the company is sure how they are computed. The data to compute these measures have been gathered and appear below:

Required:
1. For each month, compute the following operating performance measures:
a. Throughput time.
b. Manufacturing cycle efficiency (MCE).
c. Delivery cycle time.
2. Using the performance measures given in the problem and those you computed in (1) above, do the following:
a. Identify areas where the company seems to be improving.
b. Identify areas where the company seems to be deteriorating or stagnating.
c. Explain why you think some specific areas are improving while others are not.
3. Refer to the move time, process time, and so forth, given above for month 4.
a. Assume that in month 5 the move time, process time, and so forth, are the same as for month 4, except that through the implementation of lean production, the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.
b. Assume that in month 6 the move time, process time, and so forth, are the same as for month
4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time andMCE.

Month 3 Quality control measures: Customer complaints as a percentage of units sold warranty claims as a percentage of units sold Defects as a percentage of units produced 1.4% 2.3% 4.6% 1.3% 2.1% 4.2% 1.1% 2.0% 3.7% 1.0% 1.8% 3.4% Material control measures Scrap as a percentage of total cost 3.2% 2.9% 3.0% 2.7% Machine performance measures Percentage of machine availability Use as a percentage of availability.. Average setup time (hours) 80% 75% 82% 73% 81% 71% 2 79% 70% 2.7 2.5 2.5 Delivery performance measures Throughput time Manufacturing cycle efficiency Delivery cycle time Percentage of on-time deliveries 84% 87% 91% 95% Month Wait time per order before start of production, in days 16.7 15.2 12.3 9.6 Inspection time per unit, in days Process time per unit, in days Queue time per unit, in days. 5.7 5.6 5.7 Move time per unit in days 0.6 0.6 06 0.6 1.4 1.3 1.3 1.4

Step by Step Solution

★★★★★

3.46 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 a b and c Month 1 2 3 4 Throughput time in days Process time 06 06 06 06 Inspection time 01 03 06 08 Move time 14 13 13 14 Queue time 56 57 56 57 To... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

104-B-M-A-S-C (652).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

From the personal selling perspective, there have been many changes in the role of the salesperson over the past decade. One aspect that drives numerous changes is the development of various forms of...

In recent years, there have been many new product introductions in a yogurt market that is quite old. The new twist is Greek yogurt, and it fits with the increased emphasis on healthy living and...

There have been many failures in the development of application systems using the traditional SDLC. Discuss some characteristics of the methodology that could contribute to the high failure rate...

Exeter Corporation has recently begun a continuous improvement campaign. As a consequence, there have been many changes in operating procedures. Progress has been slow, particularly in trying to...

Problem 12-22 Internal Business Process Performance Measures [LO12-3] Exeter Corporation has recently begun a continuous improvement campaign. As a consequence, there have been many changes in...

Exeter Corporation has recently begun a continuous improvement campaign. As a consequence, there have been many changes in operating procedures. Progress has been slow, particularly in trying to...

PROBLEM 1 1 - 2 2 Internal Business Process Performance Measures [ L 0 3 ] Exeter Corporation has recently begun a continuous improvement campaign. As a consequence, there have been many changes in...

Exeter Corporation has recently begun a continuous improvement campaign. As a consequence, there have been many changes in operating procedures. Progress has been slow, particularly in trying to...

A disk has a final angular displacement of 40rad after undergoing an angular acceleration for 4 seconds. If the initial angular velocity was 34 rad/s and the Initial angular position was Orad, what...

2. Northern Flying Science is preparing to buy an aircraft estimated to cost $600,000 by making equal payments at the end of every three months into a sinking fund for five years. Interest earned by...

Which of the following statements is correct? Secondary markets are markets in which new securities are sold for the first time. Nominat rate of interest is an interest rate determined in the absence...

What types of page faults can occur in a virtualized memory (bare metal based)? Explain in detail the possible ways to handle these page faults.

Debreu Beverages has an optimal capital structure that is 70% common equity, 20% debt, and 10% preferred stock. Debreu's pretax cost of equity is 9%. Its pretax cost of preferred equity is 7%, and...

In this problem, we consider replacing an existing electrical water heater with an array of solar panels. The net installed investment cost of the panels is $1,400 ($2,000 less a 30% tax credit from...

A company sold a $1,000,000 issue of bonds with a 15-year life, paying 4% interest per year. The bonds were sold at par value. If the company paid a selling fee of $50,000 and has an annual expense...

Explain the first three steps in the accounting cycle.

How do the net present value and the internal rate of return methods differ in their approach to evaluating investment alternatives?

Explain the difference between static and flexible budgets.

Markov Chain There are 2 cables, A and B, transmitting signals between Sydney and Melbourne. The waiting times until cable A or cable B breaks are independent, exponential distributed with mean A...

The following data were accumulated for use in reconciling the bank account of Zeks Co. for May 2016: 1. Cash balance according to the companys records at May 31, 2016, $22,110. 2. Cash balance...

\f\f\f\f\fti 23 mm on Astatistics lecturer at Costaa'rt determined the relationship between the number of sessions students attend (x) and their \"C\" 9'31 \"New\" coursework mark {12) to be the...