Nonfinancial measures of quality, manufacturing cycle efficiency. (CMA, adapted) Pre...

Nonfinancial measures of quality, manufacturing cycle efficiency. (CMA, adapted) Prescott 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 2012 and 2013 for its only product:

1. Compute the manufacturing cycle efficiency for an order for 2012 and 2013.

2. For each year 2012 and 2013, 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 2012 and 2013.