Compute manufacturing cycle efficiency

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Reference no: EM1313010

The Cuddly Creations Company: Productivity improvement: compensation based on performance; computation of manufacturing cycle efficiency, process productivity, process quality yield and hourly throughput.

The Cuddly Creations Company produces small plastic dolls in its Georgia manufacturing plant. The company is currently evaluating ways to improve productivity. The accountant of the firm's parent organization suggested that management implement a new compensation plan based on throughput performance measure as an incentive to increase productivity. To demonstrate how such a measure might work, the accountant gathered the following production data for a recent month:

Total units attempted

6,000,000

Good units manufactured

4,800,000

Processing time (total hours)

800

Value-added processing time

600

a. How many defective units were produced?
b. Compute manufacturing cycle efficiency.
c. Compute process productivity.
d. Compute process quality yield.
e. Compute hourly throughput.

Reference no: EM1313010

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