MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Cost Accounting
16th Edition
ISBN: 9780134476384
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 19, Problem 19.27E
Nonfinancial measures of quality and time. For the past two years, Worldwide Cell Phones (WCP) has been working to improve the quality of its phones. Data for 2016 and 2017 follows (in thousands of phones):
| 2016 | 2017 | |
| Cell phones produced and shipped | 2,500 | 10,000 |
| Number of defective units shipped | 125 | 400 |
| Number of customer complaints | 190 | 250 |
| Units reworked before shipping | 150 | 700 |
| Manufacturing cycle time | 13 days | 14 days |
| Average customer-response time | 28 days | 26 days |
- 1. For each year, 2016 and 2017, calculate the following:
Required
- a. Percentage of defective units shipped
- b. Customer complaints as a percentage of units shipped
- c. Percentage of units reworked during production
- d. Manufacturing cycle time as a percentage of total time from order to delivery
- 2. Referring to the information computed in requirement 1, explain whether WCP’s quality and timeliness have improved.
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Students have asked these similar questions
Each day, a FedEx competitor processes approximately 50,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of errors during a 5-day week (see the "FedEx: Measuring Service Performance" box). These values are hypothetical and do not reflect any real company’s actual performance.
Description
Weight
Number of Errors
Complaints reopened
3
130
Damaged packages
10
19
International
1
107
Invoice adjustments
1
282
Late pickup stops
3
200
Lost packages
10
3
Missed proof of delivery
1
28
Right date late
1
751
Traces
3
111
Wrong day late
5
16
Compute the Service Quality Indicator by finding the weighted sum of errors as a percentage of total shipments. Do not round intermediate calculations. Round your answer to three decimal places.
Service Quality Indicator (SQI): %
Nonnancial measures of quality and time. For the past two years, Worldwide Cell Phones (WCP) has been working to improve the quality of its phones. Data for 2016 and 2017 follows (in thousands of phones):
DataSpan, 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 2.5Wait time per order before start of production 23.0…
Chapter 19 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Cost Accounting
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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