2016 2,500 125 190 2017 Cell phones produced and shipped Number of defective units shipped Number of customer complaints Units reworked before shipping Manufacturing cycle time Average customer-response time 10,000 400 250 150 13 days 28 days 700 14 days 26 days 1. For each year, 2016 and 2017, calculate the following: a. Percentage of defective units shipped b. Customer complaints as a percentage of units shipped c. Percentage of units reworked during production d. Manufacturing cycle time as a percentage of total time from order to delivery 2. Referring to the information computed in requirement 1, explain whether WCP's quality and timeliness have improved. Required

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Nonnancial measures of quality and time. For the past two years, Worldwide Cell Phones (WCP) has been working to improve the quality of its phones. Data for 2016 and 2017 follows (in thousands of phones):

2016
2,500
125
190
2017
Cell phones produced and shipped
Number of defective units shipped
Number of customer complaints
Units reworked before shipping
Manufacturing cycle time
Average customer-response time
10,000
400
250
150
13 days
28 days
700
14 days
26 days
1. For each year, 2016 and 2017, calculate the following:
a. Percentage of defective units shipped
b. Customer complaints as a percentage of units shipped
c. Percentage of units reworked during production
d. Manufacturing cycle time as a percentage of total time from order to delivery
2. Referring to the information computed in requirement 1, explain whether WCP's quality and timeliness
have improved.
Required
Transcribed Image Text:2016 2,500 125 190 2017 Cell phones produced and shipped Number of defective units shipped Number of customer complaints Units reworked before shipping Manufacturing cycle time Average customer-response time 10,000 400 250 150 13 days 28 days 700 14 days 26 days 1. For each year, 2016 and 2017, calculate the following: a. Percentage of defective units shipped b. Customer complaints as a percentage of units shipped c. Percentage of units reworked during production d. Manufacturing cycle time as a percentage of total time from order to delivery 2. Referring to the information computed in requirement 1, explain whether WCP's quality and timeliness have improved. Required
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