Question: For the past two years, Value Mobile has been working to improve the quality of its phones. Data for 2019 and 2020 follows (in thousands
For the past two years, Value Mobile has been working to improve the quality of its phones. Data for 2019 and 2020 follows (in thousands of phones):
| 2019 | 2020 | |
| Cell phones produced and shipped | 3819 | 16920 |
| Number of defective units shipped | 142 | 498 |
| Number of customer complaints | 234 | 383 |
| Units reworked before shipping | 185 | 867 |
| Manufacturing cycle time (days) | 17 | 19 |
| Average customer response time (days) | 33 | 31 |
Required:
- For each year, 2019 and 2020, calculate the following:
- percentage of defective units shipped
- customer complaints as a percentage of units shipped
- percentage of units reworked during production
- manufacturing cycle time as a percentage of total time from order to delivery
| 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 | |||
| 2016 | 2017 | |||
| Percentage of Defective Units Shipped | ||||
| Customer complaints as a % of units shipped | ||||
| Percentage of units reworked during production | ||||
| Manufacturing cycle time as a percentage of total time from order to delivery |
| |||
| Referring to the information computed in requirement 1, explain whether Value Mobiles quality and timeliness have improved. Be specific. |
| From a Balanced Scorecard perspective, what performance measures should be used to incentivise managers? Explain why. |
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