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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
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: MonthQuality control measures: Number of defects Number of warranty claims Number of customer complaints Material control measures: Purchase order lead timedaysdaysdaysdaysScrap 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 ontime deliveries 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: Average per Month in daysWait time per order before start of productionInspection time per unitProcess time per unitQueue time per unitMove time per unit Required:a Compute the throughput time for each monthb Compute the manufacturing cycle efficiency MCE for each monthc Compute the delivery cycle time for each month. a Refer to the inspection time, process time, and so forth, given for month Assume that in month the inspection time, process time, and so forth, are the same as for month except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCEb Refer to the inspection time, process time, and so forth, given for month Assume that in month the inspection time, process time, and so forth, are the same as in month except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production. Compute the new throughput time and MCE.
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