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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
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 data relating to activities over the last four months: Month 1 2 3 4 200 61 117 178 54 111 139 45 94 97 42 73 8 days 7 days 5 days 2% 4 days 1% 1% 3% Quality control measures: Number of defects Number of warranty claims Number of customer complaints Material control measures: Purchase order lead time Scrap 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 4% 94% 8 5% 91% 10 5% 88% 8% 84% 12 11 ? ? ? 95% ? ? ? 94% A. a. n. ? ? ? ? ? ? 88% 91%
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