Question:
Historically, Kaleidoscope Corp. has evaluated divisional performance on financial measures. Top managers are now seeking alternative measures that more accurately assess success in the activities that generate customer value. One promising measure is throughput. Management has gathered the following information on one of its larger operating divisions:
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Units started and completed
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60,000
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Total good units completed
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39,000
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Total value-added hours of processing time
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24,000
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Total hours of divisional time
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36,000
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a. What is the division's manufacturing cycle efficiency?
b. What is the division's process productivity?
c. What is the division's process quality yield?
d. What is the total hourly throughput?
e. What can Kaleidoscope Corp.'s management do to raise hourly throughput?