Formulas Flashcards
1
Q
Margin
A
Net Operating Income / Sales
2
Q
Turnover
A
Sales / Avg. Operating Assets
3
Q
Return on Investment
A
Net Operating Income / Average Operating Assets
4
Q
Residual Income
A
Net Operating Income - (Avg. Operating Assets * Min. RRR)
5
Q
Manufacturing Cycle Time
A
Time to turn RAW MATERIALS into FINISHED GOODS (also called THROUGHPUT TIME)
6
Q
Manufacturing Cycle Efficiency
A
Value Added Time (or Process Time) / Throughput
7
Q
Throughput Time
A
Process Time + Inspection Time + Move Time + Queue Time
8
Q
Delivery Cycle Time
A
Wait Time + Throughput Time
