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:

Required
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.

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Nonfinancial Quality Measures 2011 Number of returned goods Number of defective units reworked Annual hours spent on quality training per employee Number of units delivered on time 750 2,200 38 2012 915 1,640 24,820 29935 2012 33,668 2,000 Annual Totals Units of finished goods shipped Average total hours worked per employee 2011 28,480 2,000