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Problem 11-19 Internal Business Process Performance Measures (LO11-3] Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing
Problem 11-19 Internal Business Process Performance Measures (LO11-3] 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: Average per Month (in days) 1 2 3 Wait time per order before start of production Inspection time per unit Process time per unit Queue time per unit Move time per unit 9.0 0.8 2.7 5.1 0.4 10.7 0.7 2.6 5.4 0.6 12.0 0.7 2.3 6.4 0.6 14.0 0.7 2.2 7.4 0.7 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 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, 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
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