Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 19, Problem 19.28E
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:
| Nonfinancial Quality Measures | 2016 | 2017 |
| Number of returned goods | 500 | 1,000 |
| Number of defective units reworked | 2,500 | 2,000 |
| Annual hours spent on quality training per employee | 36 | 54 |
| Number of units delivered on time | 20,000 | 34,000 |
| Annual Totals | 2016 | 2017 |
| Units of finished goods shipped | 25,000 | 1,800 |
| Average total hours worked per employee | 40,000 | 1,800 |
The following information relates to the average amount of time needed to complete an order:
| Time to Complete an Order | 2016 | 2017 |
| Wait time | ||
| From customer placing order to order being received by production | 14 | 10 |
| From order received by production to machine being set up for production | 9 | 7 |
| Inspection time | 5 | 3 |
| Process time | 4 | 4 |
| Move time | 2 | 2 |
- 1. Compute the manufacturing cycle efficiency for an order for 2016 and 2017.
Required
- 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.
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Chapter 19 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 19 - Describe two benefits of improving quality.Ch. 19 - Prob. 19.2QCh. 19 - Name two items classified as prevention costs.Ch. 19 - Give two examples of appraisal costs.Ch. 19 - Distinguish between internal failure costs and...Ch. 19 - Describe three methods that companies use to...Ch. 19 - Companies should focus on financial measures of...Ch. 19 - Give two examples of nonfinancial measures of...Ch. 19 - Give two examples of nonfinancial measures of...Ch. 19 - When evaluating alternative ways to improve...
Ch. 19 - Distinguish between customer-response time and...Ch. 19 - Prob. 19.12QCh. 19 - Give two reasons why delays occur.Ch. 19 - Companies should always make and sell all products...Ch. 19 - Prob. 19.15QCh. 19 - Rector Corporation is examining its quality...Ch. 19 - Six Sigma is a continuous quality improvement...Ch. 19 - Costs of quality. (CMA, adapted) Osborn, Inc.,...Ch. 19 - Costs of quality analysis. Adirondack Company...Ch. 19 - Costs-of-quality analysis. Safe Travel produces...Ch. 19 - Costs of quality, quality improvement. iCover...Ch. 19 - Prob. 19.22ECh. 19 - Prob. 19.23ECh. 19 - Waiting time. Its a Dogs World (IDW) makes toys...Ch. 19 - Waiting time, service industry. The registration...Ch. 19 - Waiting time, cost considerations, customer...Ch. 19 - Nonfinancial measures of quality and time. For the...Ch. 19 - Nonfinancial measures of quality, manufacturing...Ch. 19 - Statistical quality control. Harvest Cereals...Ch. 19 - Quality improvement, Pareto diagram,...Ch. 19 - Quality improvement, relevant costs, and relevant...Ch. 19 - Quality improvement, relevant costs, and relevant...Ch. 19 - Waiting times, manufacturing cycle times. The...Ch. 19 - Prob. 19.34PCh. 19 - Manufacturing cycle times, relevant revenues, and...Ch. 19 - Compensation linked with profitability, waiting...Ch. 19 - Ethics and quality. Weston Corporation...Ch. 19 - Prob. 19.38P
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