Question: Nonfinancial measures of quality, manufacturing cycle efficiency. (CMA, adapted) Turnkey 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:
The following information relates to the average amount of time needed to complete an order:
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.