For the past two years, Worldwide Cell Phones (WCP) has been working to improve the quality of

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For the past two years, Worldwide Cell Phones (WCP) has been working to improve the quality of its phones. Data for 2016 and 2017 follows (in thousands of phones):
2016 2017
Cell phones produced and shipped............2,500.........10,000
Number of defective units shipped...............125.............400
Number of customer complaints..................190.............250
Units reworked before shipping..................150..............700
Manufacturing cycle time.....................13 days.........14 days
Average customer-response time............28 days.........26 days
Required:
1. For each year, 2016 and 2017, calculate the following:
a. Percentage of defective units shipped
b. Customer complaints as a percentage of units shipped
c. Percentage of units reworked during production
d. Manufacturing cycle time as a percentage of total time from order to delivery
2. Referring to the information computed in requirement 1, explain whether WCP's quality and timeliness have improved.
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Horngrens Cost Accounting A Managerial Emphasis

ISBN: 978-0134475585

16th edition

Authors: Srikant M. Datar, Madhav V. Rajan

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