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 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: Month1234Quality control measures: Number of defects18516312491 Number of warranty claims46393027 Number of customer complaints102967958 Material control measures: Purchase order lead time8days7days5days4daysScrap as a percent of total cost1%1%2%3% Machine performance measures: Machine downtime as a percentage of availability3%4%4%6% Use as a percentage of availability95%92%89%85% Setup time (hours)8101112 Delivery performance measures: Throughput time? ??? Manufacturing cycle efficiency (MCE)???? Delivery cycle time? ??? Percentage of on-time deliveries96%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: Average per Month (in days)1234Wait time per order before start of production9.011.512.014.0Inspection time per unit0.80.70.70.7Process time per unit2.12.01.91.8Queue time per unit2.84.46.07.0Move time per unit0.30.40.40.5 Required:1-a. Compute the throughput time for each month.1-b. Compute the manufacturing cycle efficiency (MCE) for each month.1-c. Compute the delivery cycle time for each month. 3-a. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE.3-b. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, 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.
image text in transcribed

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

Financial Accounting and Reporting

Authors: Barry Elliott, Jamie Elliott

14th Edition

978-0273744535, 273744445, 273744534, 978-0273744443

More Books

Students also viewed these Accounting questions