Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company is finding it necessary

image text in transcribedimage text in transcribedimage text in transcribed

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: 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 3 185 163 124 91 46 39 30 27 102 96 79 58 8 days 7 days 5 days 4 days 1% 1% 2% 3% 4% 4% 95% 92% 89% 10 11 ... ? ? ? ? ? ? ? 96% 95% 92% 6% 85% 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: 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) 1 2 3 9.0 11.5 12.0 14.0 0.8 0.7 0.7 0.7 2.1 2.0 1.9 1.8 2.8 4.4 6.0 0.3 0.4 0.4 7.0 0.5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen W. Braun, Wendy M. Tietz

4th edition

978-0133428469, 013342846X, 133428370, 978-0133428377

More Books

Students also viewed these Accounting questions