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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 company
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:
Month
Quality control measures:
Number of defects
Number of warranty claims
Number of customer complaints
Material control measures:
Purchase order lead time days days days days
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 question mark question mark question mark question mark
Manufacturing cycle efficiency MCEquestion mark question mark question mark question mark
Delivery cycle time question mark question mark question mark question mark
Percentage of ontime deliveries
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:
Average per Month in days
Wait time per order before start of production
Inspection time per unit
Process time per unit
Queue time per unit
Move time per unit
Required:
a Compute the throughput time for each month.
b Compute the manufacturing cycle efficiency MCE for each month.
c Compute the delivery cycle time for each month.
a Refer to the inspection time, process time, and so forth, given for month Assume in month the inspection time, process time, and so forth are the same as for month except the company is able to completely eliminate the queue time using Lean Production. Compute the new throughput time and MCE.
b Refer to the inspection time, process time, and so forth, given for month Assume in month the inspection time, process time, and so forth are the same as in month except the company is able to eliminate the queue time and inspection time using Lean Production. Compute the new throughput time and MCE.
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