Southern Plastics Corporation manufactures a range of molded plastic products, such as kitchen utensils and desk accessories. The production process in the Baton Rouge plant utilizes a just-in-time inventory and production management system. Each month the controller prepares a production efficiency report, which is sent to corporate headquarters. The data compiled in these reports, for the first six months of the year, are as follows:

Required:
1. Write a memo to the company president evaluating the Baton Rouge plant€™s performance. Structure your report by dividing it into the following parts:
(a) Production processing and productivity,
(b) Product quality and customer acceptance,
(c) Delivery performance,
(d) Raw material, scrap, and inventory,
(e) Machine maintenance.
2. If you identify any areas of concern in your memo, indicate an appropriate action formanagement.

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PRODUCTION EFFICIENCY REPORT Southern Plastics Corporation Baton Rouge Plant January through June Jan. Feb. Mar.Apr. May Jue Average Overtime hours Total setup time Cycle time (average in hours) 74 104 78.2 64.5 17.8 61 Percentage of orders filled Percentage of on-time deliveries Inventory value/sales revenue Number of defective units, finished goods 95% 100% 99% 5% 19 94% 100% 98% 96% 100% 99% 17 90% 100% 100% 89% 100% 96% 90% 100% 94% 92.3% 100% 97.7% 596 5% 4% 5% 5% 4.8% 80 75 40 38.2 Number of raw-material shipments with defective materials Number of products returned Aggregate productivity1.3 1.3 1.2 25 12 115 123 Power consumption (thousands of 1.3 0 kilowatt-hours) Machine downtime (hours... Battleneck machine downtime.- Number of unscheduled machine 800 795 802 801 800 800 799.7 21.7 3.2 30 maintenance calls