Operational Performance Measures

Zuma Company manufactures surfboards. The controller prepares a weekly production efficiency report and sends it to corporate headquarters. The data compiled in these reports for a recent six week period follow:

ZUMA COMPANY

Production Efficiency Report

 

Week

1

2

3

4

5

6

Percentage of manufacturing cycle efficiency

70

69

72

65

66

62

Percentage of on time deliveries

98

95

96

92

94

90

Number of customer complaints

20

18

22

25

23

27

Required

a. Write a memo to the company president evaluating the plant’s performance.

b. If you identify any areas of concern in your memo, indicate an appropriate action for management to take. Indicate any additional information you would like to have to make your evaluation.