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Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company i finding it necessary to
Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company i 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 Quality control measures Number of defects Number of varranty claims Number of customer complaints 195 173 134 95 112 106 89 68 10 days 9 days 7 days 5 days 56 49 40 37 Material control measures Purchase order lead time Scrap as a percent of total cost 236 Machine performance measures Machine downtime as a percentage of availability Use as a percentage of availability Setup time (hours) 68 958 929 898 859 48 13 14 Delivery performance measures: Throughput time Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries 968 95 928 898 The president has read in industry journals that throughput time, MCE, and delivery cycle time are important measures of
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