Problem 12-22 Internal Business Process Performance Measures [LO12-3] Exeter Cor
ID: 2495963 • Letter: P
Question
Problem 12-22 Internal Business Process Performance Measures [LO12-3]
Exeter Corporation has recently begun a continuous improvement campaign. As a consequence, there have been many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory.
Management has been gathering the following data over the past four months:
Month
The president has attended conferences at which the importance of throughput time, manufacturing cycle efficiency, and delivery cycle time were stressed, but no one at the company is sure how they are computed. The data to compute these measures have been gathered and appear below:
Month
Exeter Corporation has recently begun a continuous improvement campaign. As a consequence, there have been many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory.
Management has been gathering the following data over the past four months:
Month 4 Throughput time in days: Process time Inspection time Move time Queue time Total throughput time Manufacturing cycle efficiency (MCE) Delivery cycle time in days: Total throughput time Total delivery cycle timeExplanation / Answer
proces time- 4 and 3
inspeciton time is - 2 and 3
move time is 3 and 3
total through time is 9 and 9