Problem $12-15($Algo$)$ Internal Business Process Performance Measures $[$LO$12-3]$

Tombro Industries is automating one of its plants and developing a flexible manufacturing system. In an effort to revise its performance measurement system, the company gathered the following data for the last four months:

Month

$1234$

Quality control measures:

Number of defects $18816612790$

Number of warranty claims $49423330$

Number of customer complaints $105998261$

Material control measures:

Purchase order lead time $10$ days $9$ days $7$ days $5$ days

Scrap as a percent of total cost $1\%1\%2\%3\%$

Machine performance measures:

Machine downtime as a percentage of availability $4\%5\%5\%8\%$

Use as a percentage of availability $95\%92\%89\%85\%$

Setup time $($hours$)10121314$

Delivery performance measures:

Throughput time $?$question mark $?$question mark $?$question mark $?$question mark

Manufacturing cycle efficiency $($MCE$)?$question mark $?$question mark $?$question mark $?$question mark

Delivery cycle time $?$question mark $?$question mark $?$question mark $?$question mark

Percentage of on$-$time deliveries $96\%95\%92\%89\%$

The president read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how to compute them. You have been asked to assist the company and gathered the following data:

Average per Month $($in days$)$

$1234$

Wait time per order before start of production $9\mathrm{.}011\mathrm{.}212\mathrm{.}014\mathrm{.}0$

Inspection time per unit $0\mathrm{.}70\mathrm{.}60\mathrm{.}60\mathrm{.}6$

Process time per unit $2\mathrm{.}82\mathrm{.}41\mathrm{.}81\mathrm{.}0$

Queue time per unit $3\mathrm{.}14\mathrm{.}26\mathrm{.}07\mathrm{.}6$

Move time per unit $0\mathrm{.}40\mathrm{.}60\mathrm{.}60\mathrm{.}8$

Required:

$1-$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.

$3-$a$.$ Refer to the inspection time, process time, and so forth, given for month $4.$ Assume in month $5$ the inspection time, process time, and so forth are the same as for month $4,$ except the company is able to completely eliminate the queue time using Lean Production. Compute the new throughput time and MCE.

$3-$b$.$ Refer to the inspection time, process time, and so forth, given for month $4.$ Assume in month $6$ the inspection time, process time, and so forth are the same as in month $4,$ except the company is able to eliminate the queue time and inspection time using Lean Production. Compute the new throughput time and MCE.