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PROBLEM 11-16 Measures of Internal Business Process Performance [LO3] MacIntyre Fabrications, Ltd., of Aberdeen, Scotland, has recently begun a continuous improve- ment campaign in conjunction

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PROBLEM 11-16 Measures of Internal Business Process Performance [LO3] MacIntyre Fabrications, Ltd., of Aberdeen, Scotland, has recently begun a continuous improve- ment campaign in conjunction with a move toward Lean Production Management has developed new performance measures as part of this campaign. The following operating data have been gath- ered over the last four months: Month 2 1 3 4 Throughput time.... Manufacturing cycle efficiency Delivery cycle time... Percentage of on-time deliveries Total sales (units). ? ? ? 72% 10.540 ? ? ? 73% 10,570 ? ? ? ? ? ? 78% 85% 10,550 10,490 Management would like to know the company's throughput time, manufacturing cycle effi- ciency, and delivery cycle time. The data to compute these measures have been gathered and appear below: Month 1 2 3 4 0.5 0.6 0.5 0.5 0.4 0.5 0.5 0.4 Move time per unit, in days. Process time per unit, in days. Wait time per order before start of production, in days Queue time per unit, in days. Inspection time per unit, in days. 9.6 3.6 0.7 8.7 3.6 0.7 5.3 2.6 0.4 4.7 1.7 0.3 Required: 1. For each month, compute the following: The throughput time. b. The manufacturing cycle efficiency (MCE). The delivery cycle time. 2. Using the performance measures given in the problem and those you computed in (1) above, identify whether the trend over the four months is generally favorable, generally unfavorable, or mixed. What areas apparently require improvement and how might they be improved

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