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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 Month 4 Quality control measures: Number of defects Number of warranty claims Number of customer complaints 202 63 119 180 56 113 141 47 96 75 Material control measures: Purchase order lead time Scrap as a percent of total cost 8 days 7 days 5 days 3% 4 days 2% 2% 6.% Machine performance measures: Machine downtime as a percentage of availability Use as a percentage of availability Setup time (hours) 3% 95% 8 4% 92% 4% 89% 6% 85% 10 12 Delivery performance measures: Throughput time Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries 96% 95% 92% 89%
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