Problem 12-15 (Algo) Internal Business Process Performance Measures (LO12-3] 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 deta relating to activities over the last four months: Month 2 186 47 103 164 40 97 125 31 80 92 28 59 10 days 9 days 7 days 25 26 38 5 days 66 Quality control measures: Number of defects Number of warranty claims Number of customer complaints Material control measures: Purchase order lead time Serap as a percent of total cost Machine performance measures: Machine downtime as a percentage of availability Use as a percentage of availability Setup time (hours) Delivery performance measures Throughput time Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries 58 93% 12 58 908 13 88 868 14 10 ? 2 7 978 ? ? 7 960 ? ? 7 931 7 7 908 The president has read in industry journals that throughput time, MCE, and delivery 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 (in days) 2 The president has read in industry Journals that throughput time, MCE, and delivery 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 fin days) 2 4 12.4 15.0 wait time per order before start of production Inspection time per unit Process time per unit Queue tine per unit Move time per unit 0.8 0.8 10.0 0.9 2.8 3.1 0.2 2.3 4.2 0.3 13.0 0.8 1.6 5.) 0.3 1.0 7.) 0.9 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. Complete this question by entering your answers in the tabs below. Required 1 Required 3 1-a. Compute the throughput time for each month. 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Cornute the delivery cuele time for each month. www***.MOV 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. Complete this question by entering your answers in the tabs below. Required 1 Required 3 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. (Round your answers to 1 decimal place.) Show less Delivery Cycle Time Month 1 Month 2 Month 3 Month 4 Throughput Time days days days days Manufacturing Cycle Efficiency (MCE) % % % % days days days days Required Required 3 > **www.iwi 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, pro- time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during product and the inspection time using Lean Production Compute the new throughput time and MCE. Complete this question by entering your answers in the tabs below. Required 1 Required 3 3-a. (Month 5) 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. (Month 6) 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. (Round your answers to 1 decimal place.) Show less Month 5 Throughput time Manufacturing cycle efficiency (MCE) days % Month 6 days % (Required 1 Required 3
