Prescott Manufacturing evaluates the performance of its production managers based on a variety of factors, including cost,

Question:

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 2016 and 2017 for its only product:

image text in transcribed

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

image text in transcribed

1. Compute the manufacturing cycle efficiency for an order for 2016 and 2017.
2. For each year 2016 and 2017, 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 2016 and 2017.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Horngrens Cost Accounting A Managerial Emphasis

ISBN: 9781292211541

16th Global Edition

Authors: Srikant Datar, Madhav Rajan

Question Posted: