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Problem 9-19A Internal Business Process Performance Measures [LO9-3] Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing
Problem 9-19A Internal Business Process Performance Measures [LO9-3] 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 Quality control measures: Number of defects 200 170 130 90 Number of warranty claims 55 32 20 17 Number of customer complaints 130 140 150 110 Material control measures: Purchase order lead time 11 days 7 days 5 days 2 days Scrap as a percent of total cost 3.3% 3.0% 3.2% 2.7% Machine performance measures: Machine downtime as a percentage of availability a percentage of availability 79% 80% 81% 79% 73% 74% 71% 71% Setup time (hours) 2.3 2.3 2.3 2.3 Delivery performance measures Throughput time Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries 84% 88% 93% 94% The president has read in industry journals that throughput time, MCE, and delivery cycle time are mportant 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) Wait time per order before start of production 16.9 15.1 11.8 9.0 Inspection time per unit 0.3 0.4 0.8 0.6 Process time per unit 0.4 0.4 0.4 0.4 Queue time per unit 5.5 5.6 5.5 5.6 Move time per unit 1.6 1.5 1.5 1.6 Required 1-a. Compute the throughput time for each month. (Round your answers to 1 decimal place.) Throughput Time Month 1 days Month 2 days Month 3 days Month 4 days
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