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Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company is finding it necessary to make many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory. In an effort to evaluate performance and determine where Improvements can be made, management has gathered the following data relating to activities over the last four months: Month 1 2. 3 4 Quality control measures: Number of defects 195 173 134 95 56 49 40 37 112 186 89 68 10 days 2% 9 days 2% 7 days 3% 5 days 6% 3% 4% 6% Number of warranty claims Number of customer complaints Material control measures: Purchase order lead time Scrap as a percent of total cost Machine performance measures: Machine downtime as a percentage of availability Use as a percentage of availability Setup time (hours) Delivery performance measures: Throughput time Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries 95% 92% 89% 85% 10 12 13 14 2 ? ? ? ? ? ? ? ? ? ? ? 96% 95% 92% 89% The president has read in Industry Journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how they are computed. You have been asked to assist the company, and you have gathered the following data relating to these measures: Average per Month (in days) 1 2 3 4 9.9 10.8 12. 14.2 0.7 9.7 0.7 Wait time per order before start of production Inspection time per unit Process time per unit Queue time per unit Move time per unit 2.8 2.7 2.6 1.1 4.1 4.4 6.3 8.6 0.3 0.4 9.4 0.6 Required: 1-a. Compute the throughput time for each month. 1-6. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. 3-a. Refer to the Inspection time, process time, and so forth, given for month 4. Assume that in month 5 the Inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE. 3-6. Refer to the Inspection time, process time, and so forth, given for month 4. Assume that in month 6 the Inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the Inspection time using Lean Production Compute the new throughout time and MCE. Complete this question by entering your answers in the tabs below. Required 1 Required 3 1-a. Compute the throughput time for each month. 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. (Round your answers to 1 decimal place.) Show less Throughput Time Manufacturing Cycle Efficiency (MCE) Delivery Cycle Time Month 1 days % days Month 2 days 96 days Month 3 days 96 days Month 4 days days (Required 1 Required 3 > Required 1 Required 3 3-a. (Month 5) Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE. 3-b. (Month 6) Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production. Compute the new throughput time and MCE. (Round your answers to 1 decimal place.) Show less Month 5 Month 6 Throughout time days days Manufacturing cycle efficiency (MCE) %6 96 Required 1 Required 3 Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, Meals on Wheels, and housekeeping. Data on revenue and expenses for the past year follow. Revenues Home Meals On House- Total Nursing Wheels keeping $924,900 $ 262,200 $ 497,800 $ 255,800 469,00 111,eee 205,000 153,000 455, eee 151,000 202,800 102,000 Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 69, 300 43,800 114,500 184,800 412,400 8,300 21,000 40,400 52,488 122,100 48,800 7,700 38,500 81,400 20,200 15,180 35,600 51,00 121,900 168,400 $ 42,600 $ 28,900 $ 33,680 $(19,999) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $42,600 to be unsatisfactory, therefore, she is considering the possibility of discontinuing the housekeeping program. The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability Insurance and the salary of the program administrator would be avoided. Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-6. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented Income statement. 2-6. Would a segmented Income statement format be more useful to management In assessing the long-run financial viability of the various services? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2A Req 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Financial (disadvantage) Rea 1 Req 1B > Reg 1A Reg 1B Reg 2A Reg 2B Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House keeping Revenues Variable expenses Contribution margin 0 0 0 0 Traceable fixed expenses: Depreciation Liability insurance Program administrators salaries Total traceable fixed expenses Program segment margins 0 0 0 0 s 0 s 0 S 0 General administrative overhead Net operating income (loss) 0