Exercise 14-33 Name:
Insert your answers into the gray-shaded cells. If an answer is incorrect, the
word “wrong” will appear.
a. ÷ Total time = MCE
144,000 35%
b. Process
productivity
50,300 68.79 units per hour
c. Process
quality yield
3,460,000 84%
d. ÷ Total time = Throughput
144,000 20.30 units per hour
e. What can company management do to raise hourly throughput?
Management can increase throughput by decreasing non-value-added activities,
increasing total unit production and sales, decreasing per-unit processing time, or
increasing the process quality yield. These changes can be generated by adopting
newer technology, reorganizing the plant, implementing activity-based management
concepts, or investing in prevention costs of quality.
Solution
Value-added time
Good units
2,923,200
2,923,200
÷ Total units =
÷ Value-added time =
50,300
Good units
Total units
3,460,000