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Please Show Work! Non-Financial Performance Measures (Efficiency) JayCo Ltd. is in the process of automating string production and is developing a flexible manufacturing system. The
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Non-Financial Performance Measures (Efficiency) JayCo Ltd. is in the process of automating string production and is 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. Jason, president of JayCo Ltd., has asked you to evaluate the performance of the string production. The following information has been gathered to help determine where improvements can be made. Month 1 2 3 4 52 53 55 57 15 13 12 10 15 14 12 12 Quality control measures: Number of defective packs of string Number of customer complaints Material control measures: Purchase order lead time (days) Scrap as a percentage of total cost Machine performance measures: Machine downtime as a percentage of availability Use as a percentage of availability Setup time (hours) 1% 2% 3% 4% 8% 9% 9% 10% 90% 89% 89% 85% 2.1 2.1 2.3 2.3 Month 1 2 3 4 5 6 Delivery performance measures: Throughput time Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries 92% 92% 95% 95% In order to determine progress in the Delivery Performance measures, the additional information was provided: Month 1 3 5 6 2 6.2 4 6.6 6.0 6.5 0.1 0.1 Wait time per order before start of production Inspection time per unit Process time per unit Queue time per unit Move time per unit 0.1 0.8 0.5 1.0 0.1 0.6 1.8 0.3 1.5 2.0 0.2 2.1 0.2 0.4 For each month, compute the following: a. Throughput time b. Delivery cycle time c. MCE Assume that month 5 is the same as in month 4, except the company is able to completely eliminate the queue time during production. Compute throughput time and MCE for month 5 (above). Assume that month 6 is the same as month 4, except that the company is able to completely eliminate both the queue time during production and inspection time using Lean Production. Compute throughput and MCE for month 6 (above). Considering all of the information above, company seems to be improving in the following areas: (increase the size of the row if needed) Considering all of the information above, company seems to be deteriorating in the following areas: (increase the size of the row if needed)Step by Step Solution
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