Nonfinancial measures of quality, manufacturing cycle efficiency. (CMA, adapted) Torrance 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 2010 and 2011 for its only product:
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The following information relates to the average amount of time needed to complete an order:
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Required
1. Compute the manufacturing cycle efficiency for an order for 2010 and 2011.
2. For each year 2010 and 2011, 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 over the twoyears.