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 2012 and 2013 for its only product:

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

Required
1. Compute the manufacturing cycle efficiency for an order for 2012 and 2013.
2. For each year 2012 and 2013, 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 2012 and2013.

Transcribed Image Text:

Nonfinancial Quality Measures Number of retumed goods Number of defective units reworked Annual hours spent on quality training per employee Number of units delivered on time 2013 915 1,640 2012 750 2200 38 24,820 2993 2012 Annual Totals Units of finished goods shipped Average total hours worked per employee 28,480 2,000 2013 33,668 2000 Time te Complete an Order Wait time 2012 2013 From customer placing order to order being received by production 15 1 13 From order received by production to machine being set up for production Inspection time Process time Move time 12