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Tombro Industries is automating one of its plants and developing a flexible manufacturing system. In an effort to revise its performance measurement system, the
Tombro Industries is automating one of its plants and developing a flexible manufacturing system. In an effort to revise its performance measurement system, the company gathered the following data for the last four months: 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 Month 2 3 201 179 140 98 62 55 46 43 118 112 95 74 10 days 9 days 7 days 5 days 1% 1% 2% 3% 5% 6% 6% 10% 94% 91% 88% 84% 10 12 13 14 ? 7 7 ? ? ? 7 ? ? ? ? 95% 94% 91% 88% The president read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how to compute them. You have been asked to assist the company and gathered the following data: Wait time per order before start of production Inspection time per unit. Process time per unit Queue time per unit Move time per unit Average per Month (in days) 2 4 9.0 10.9 12.0 14.0 0.9 0.8 0.8. 0.8 3.2 2.7 2.0 1.1 3.6 5.0 6.6 8.4 0.3 0.6 0.6 0.7
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