Managerial Accounting
Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Chapter 12, Problem 20P

1.

a.

To determine

Throughput time: It is the total time required for the completion of a process. For instance, the time required to manufacture machinery from the beginning till its end is the throughput time. The throughput time comprises process time, inspection time, move time, and queue time. Wait time is not a part of throughput time.

The throughput time for each month.

1.

b.

To determine

Delivery cycle time: It is the total time required to produce as well as deliver the product to the customers. Basically, the elapsed time from the procurement of a client order until the final product is dispatched is the delivery cycle time.

The delivery cycle for each month.

1.

c.

To determine

Manufacturing cycle: This refers to the amount of time in the manufacturing process that is spent on enriching or improving the product. Basically, it is the time taken by an organization in order to convert raw material into finished goods.

The manufacturing cycle efficiency for each month.

2.

To determine

Performance indicators: Throughput time, manufacturing cycle efficiency, and delivery cycle time are all such indicators that help in analyzing the company’s performance. Throughput time is the elapsed time from the time of inception of the production process till the goods are dispatched to the customer, manufacturing cycle refers to the amount of time in the manufacturing process that is spent on enriching or improving the product, and delivery cycle time is the total time required to produce as well as deliver the product to the customers.

To evaluate: The company’s performance over the last four months.

3.

a.

To determine

Throughput time: Throughput time is the elapsed time from the time of inception of the production process till the goods are dispatched to the customer.

Manufacturing cycle efficiency: Manufacturing cycle refers to the amount of time in the manufacturing process that is spent on enriching or improving the product.

The throughput time and MCE for Month 5.

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D: Measures of Internal Business Process PerformanceDataSpan, Inc., automated its plant at the start of the current year and installed a flexiblemanufacturing system. The company is also evaluating its suppliers and moving toward LeanProduction. Many adjustment problems have been encountered, including problems relating toperformance measurement. After much study, the company has decided to use the performancemeasures below, and it has gathered data relating to these measures for the first four months ofoperations.Month1 2 3 4Throughput time (days) ? ? ? ?Delivery cycle time (days) ? ? ? ?Manufacturing cycle efficiency (MCE) ? ? ? ?Percentage of on-time deliveries 91% 86% 82% 78%Total sales (units) 3460 3312 3143 3025Management has asked for your help in computing throughput time, delivery cycle time, and MCE.The following average times have been logged over the last four months: Average per Month (in days)1 2 3 4Move time per unit 0.7 0.5 0.6 0.6Process time per unit 2.8 2.7 2.6…
DataSpan, Incorporated, automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.     Month 1 2 3 4 Throughput time (days) ? ? ? ? Delivery cycle time (days) ? ? ? ? Manufacturing cycle efficiency (MCE) ? ? ? ? Percentage of on-time deliveries 82% 77% 74% 71% Total sales (units) 3830 3667 3479 3347   Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:     Average per Month (in days) 1 2 3 4 Move time per unit 0.8 0.5 0.6 0.6 Process time per unit 2.3 2.2…
Measures of Internal Business Process Performance DataSpan. Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations. Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months: Required: 1. For each month, compute the following: a. The throughput time. b. The delivery cycle time. c. The manufacturing cycle efficiency (MCE). 2. Evaluate the company’s performance over the last four months. 3. Refer to the move lime, process time, and so forth, given above for month 4. a. Assume that…
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