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 3 205 183 144 98 66 59 50 47 1221 116 99 78 10 days 9 days 7 days 5 days 1% 1% 2% 3% 3% 4% 4% 6% 95% 92% 89% 85% 10 12 13 14 7 ? ? ? 7 ? ? ? 7 ? ? 96% 95% 92% 89% 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:

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

Step: 3

blur-text-image

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

Intermediate Accounting

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

Volume 1, 6th Edition

1259103250, 978-1259103254, 978-0071339476

More Books

Students also viewed these Accounting questions

Question

Define trading account and state the objectives of preparing it.

Answered: 1 week ago

Question

What do you understand by final accounts? Why are they prepared?

Answered: 1 week ago