Question 1

What is the difference between continuous improvement and benchmarking?

Accepted Answer

The answer of What is the difference between continuous improvement...

Question 2

The California Machining Co. has the following information for last year:
$$\begin{array} { | l | r | } 
\hline \text { Feet of metal input } & 150,000 \
\hline \text { Labor hours } & 12,000 \
\hline \text { Tons of output produced } & 6,000 \
\hline
\end{array}$$
-
The partial productivity for metal is:

Accepted Answer

A)  0.04. 
B)  0.08. 
C)  12.50. 
D)  25.00.

Question 3

Manufacturing Cycle Efficiency is computed as:

Accepted Answer

A)  Processing Time × Manufacturing Cycle Time. 
B)  Processing Time ÷ Inspection Time. 
C)  Processing Time ÷ Manufacturing Cycle Time. 
D)  Moving Time ÷ Storage Time.

Question 4

The concept of a balanced scorecard is to measure how well the organization is doing from the view of employees, suppliers, customers, business partners, and the community, as well as the shareholders.

Accepted Answer

A) True 
 B)False

Question 5

Shuster Metalworks Co. has provided the following information for last year:
 $$\begin{array} { l r l } 
\text { Pounds of metal input } & 21,000 & @ \$ 12 / \text { pound } \
\text { Lubor hours } & 8,000 & @ \$ 25 / \text { our } \
\text { Overhead costs } & \$ 165,000 & \
\text { Pounds of output produced } & 12,000 & @ \text { selling price of } \$ 70 / \text { pound }
\end{array}$$ 
Required:
Calculate the total factor productivity measure.

Accepted Answer

The answer of Shuster Metalworks Co. has provided the following...

Question 6

Explain how producing more units than can be sold can increase operating income. Would this be an issue in a service company or is it only an issue in a manufacturing environment? Could a company employ this strategy indefinitely to show continuous increases in profits?

Accepted Answer

The answer of Explain how producing more units than can...

Question 7

The primary objective of benchmarking is to evaluate performance of an activity, operation, or organization relative to the performance by other companies.

Accepted Answer

A) True 
 B)False

Question 8

The Falisari Company collected the following information (in days):
$$\begin{array} { | l | r | } 
\hline \text { Inspecting product } & 4 \
\hline \text { Transporting product } & 14 \
\hline \text { Storing product } & 20 \
\hline \text { Manufacturing product } & 65 \
\hline
\end{array}$$
-
What is the manufacturing cycle time?

Accepted Answer

A)  65 days. 
B)  34 days. 
C)  103 days. 
D)  85 days.

Question 9

________ is a firm's ability to implement low costs compared to its competitors with productivity improvements, increased efficiency, reduction of waste, and the use of cost control.

Accepted Answer

A)  Strategy 
B)  Product differentiation 
C)  Cost leadership 
D)  The balanced scorecard

Question 10

Steinwand Corporation keeps track of the time required to fill orders. Data concerning a particular order appear below:
$$\begin{array} { | l | r | } 
\hline & \text { Hours } \
\hline \text { Processing Time } & 1.5 \
\hline \text { Inspection Tirne } & 0.2 \
\hline \text { Moving Time } & 2.8 \
\hline \text { Storing Time } & 7.2 \
\hline
\end{array}$$
-
The manufacturing cycle efficiency was closest to:

Accepted Answer

A)  0.24. 
B)  0.16. 
C)  0.92. 
D)  0.08.

Question 11

Tungsten Forging Co. has provided the following information for last year:
$$\begin{array} { l r l } 
\text { Tons of metal input } & 10,000 & @ \$ 10 / \text { ton } \
\text { Labor hours } & 5,000 & @ \$ 30 \text { hour } \
\text { Overhead costs } & \$ 125,000 & \
\text { Tons of forging produced } & 8,000 & @ \text { selling price of } \$ 60 / \text { tor }
\end{array}$$
The total factor productivity measure is:

Accepted Answer

A)  $480,000. 
B)  $375,000. 
C)  1.28. 
D)  0.78.

Question 12

Which of the following is not a difficulty in implementing nonfinancial performance measurement systems?

Accepted Answer

A)  Fixation on financial measures. 
B)  Reliability of the nonfinancial measures. 
C)  Nonfinancial measures decrease goal congruence. 
D)  Lack of correlation between nonfinancial measures and financial results.

Question 13

For each of the following jobs, identify a possible nonfinancial performance measure.
(a) Computer help desk worker at your university.
(b) Dental hygienist.
(c) Airline gate agent.
(d) City bus driver.

Accepted Answer

The answer of For each of the following jobs, identify...

Question 14

The Miller Manufacturing Company collected the following information (in days) for April and May:
 $$\begin{array} { | l | r | r | } 
\hline & { \text { April } } &  { \text { May } } \
\hline \text { Transportirg product } & 2.0 & 3.0 \
\hline \text { Processing product } & 14.0 & 16.0 \
\hline \text { Inspectirng product } & 0.5 & 0.8 \
\hline \text { Storing product } & 8.0 & 5.0 \
\hline
\end{array}$$ 
Required:
a. Calculate the manufacturing cycle efficiency for April and May.
b. Calculate the processing time required for May so that May's manufacturing cycle efficiency is equal to April's manufacturing cycle efficiency.

Accepted Answer

The answer of The Miller Manufacturing Company collected the following...

Question 15

The Otero Manufacturing Company collected the following information (in days):
$$\begin{array} { | l | r | } 
\hline & \text { April } \
\hline \text { Transporting product } & 2.0 \
\hline \text { Processing product } & 14.0 \
\hline \text { Inspecting product } & 0.5 \
\hline \text { Storing product } & 6.0 \
\hline
\end{array}$$
-
What is the manufacturing cycle time?

Accepted Answer

A)  14.0 days. 
B)  16.0 days. 
C)  22.0 days. 
D)  22.5 days.

Question 16

The Alma Milling Co. has the following information for last year:
$$\begin{array} { | l | r | } 
\hline \text { Material input } & 6,864,000 \
\hline \text { Labor hours } & 97,000 \
\hline \text { Yards of output produced } & 1,311,000 \
\hline
\end{array}$$
The partial productivity for materials is:

Accepted Answer

A)  0.131. 
B)  0.191. 
C)  0.686. 
D)  5.236.

Question 17

At some manufacturing companies, line employees are allowed to stop the line or halt production if they think there is a problem occurring. In other words, if units begin to be processed that are outside of specifications.
Required:
Discuss the advantages and disadvantage of this employee empowerment policy.

Accepted Answer

The answer of At some manufacturing companies, line employees are...

Question 18

Premier Products Co. has provided the following information for last year:
$$\begin{array} { l r r } 
\text { Material costs } & \$ 150,000 \
\text { Labor hours } & \$ 45,000 \
\text { Overhead costs } & \$ 117,000 \
\text { Product produced } & 8,000 & \text { @ selling price of \$45/each }
\end{array}$$
The total factor productivity measure is:

Accepted Answer

A)  $150,000. 
B)  $312,000. 
C)  1.154. 
D)  0.832.

Question 19

Which of the following balanced scorecard perspectives focuses on shareholder's interests?

Accepted Answer

A)  Financial. 
B)  Customer. 
C)  Internal Business Process. 
D)  Learning and growth.

Question 20

The Everton Manufacturing Company collected the following information (in days):
 $$\begin{array} { | l | r | r | r | } 
\hline &{ \text { April } } & \text { May } & { \text { June } } \
\hline \text { Transporting product } & 2.0 & 3.0 & 2.0 \
\hline \text { Processing product } & 5.0 & 7.0 & 7.0 \
\hline \text { Inspecting product } & 0.5 & 0.8 & 1.0 \
\hline \text { Storing product } & 2.0 & 3.0 & 4.0 \
\hline
\end{array}$$ 
Required:
a. Calculate the manufacturing cycle efficiency for April, May, and June.
b. Calculate the processing time required for June so that the manufacturing cycle efficiency is equal to the most efficient of the previous two months.

Accepted Answer

The answer of The Everton Manufacturing Company collected the following...

Exam 18: Performance Measurement to Support Business Strategy