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Please answe all question Problem 11-19 Internal Business Process Performance Measures [L011-3] Tombro Industries is in the process of automating one of Its plants and
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Problem 11-19 Internal Business Process Performance Measures [L011-3] Tombro Industries is in the process of automating one of Its plants and developing a flexible manufacturing system. The company is tinding 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 Quality control measures Mumber of defccts 189 167 128 92 Number of warranty clains Number of customer complaints 43 34 106 100 83 62 Material control measures! Purchase order lead time 4 days days days days Scrap an a percent of total cost Machine performance measures Machine downtime as a percentage o availability Use as a percentage of availability Setup tine (houra) 68 108 91? 10 94 ? 84 ? 12 88? Delivery performance measures Throughput tine Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries 958 948 918 88 The president has read in Industry journals that throughput time, MCE, and dellvery 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 n days Wait tine per order before atart B.0 10.1 11.0 13.0 Inspection tine per unit 0.8 0.7 0.7 0-7 2-82-0 1.9 1.2 3.1 4-8 5.0 7.4 0.3 0-4 0-4 0.7 of production Process time per unit Queue tine per unit Move time per unit Required: -a. Compute the throughput time for each month. 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. -C. Compute the dellvery 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-b. Refer to the inspection time, process time, and so forth, glven 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 ellminate both the queue time during production and the Inspection time using Lean Production. Compute the new throughput time and MCEStep by Step Solution
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