Tombro Industries is in the process of automating one of its plants and developi
ID: 2476175 • Letter: T
Question
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
1 2 3 4
Quality control measures:
Number of defects
190
150
110
80
Number of warranty claims
58
38
21
16
Number of customer complaints
130
150
140
120
Material control measures:
Purchase order lead time
10 days
8 days
4 days
3 days
Scrap as a percent of total cost
3.2%
3.1%
3.2%
2.9%
Machine performance measures:
Machine downtime as a percentage of availability
81%
78%
79%
81%
Use as a percentage of availability
73%
75%
72%
70%
Setup time (hours)
2.3
2.3
2.3
2.3
Delivery performance measures:
Throughput time
?
?
?
?
Manufacturing cycle efficiency (MCE)
?
?
?
?
Delivery cycle time
?
?
?
?
Percentage of ontime deliveries
83%
86%
92%
95%
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)
1
2
3
4
Wait time per order before start of production
15.9
14.7
11.9
9.0
Inspection time per unit
0.4
0.6
0.5
0.6
Process time per unit
0.5
0.5
0.5
0.5
Queue time per unit
5.4
5.5
5.4
5.5
Move time per unit
1.5
1.4
1.4
1.5
Required:
1a. Compute the throughput time for each month. (Round your answers to 1 decimal place.)
Throughput Time
Month 1
days
Month 2
days
Month 3
days
Month 4
days
1b. Compute the manufacturing cycle efficiency (MCE) for each month. (Round your answers to 1 decimal place (i.e., 0.123 should be entered as 12.3).)
Manufacturing cycle efficiency (MCE)
Month 1
%
Month 2
%
Month 3
%
Month 4
%
1c. Compute the delivery cycle time for each month. (Round your answers to 1 decimal place.)
Delivery cycle time
Month 1
days
Month 2
days
Month 3
days
Month 4
days
3a. 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. (Round your Throughput Time to 1 decimal place. Round your MCE percentage answer to 1 decimal place (i.e., 0.123 should be entered as 12.3).)
Month 5
Throughput time
days
Manufacturing cycle efficiency (MCE)
%
3b. Refer to the move 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. (Round your Throughput Time to 1 decimal place. Round your MCE percentage answer to 1 decimal place (i.e., 0.123 should be entered as 12.3).)
Month 6
Throughput time
days
Manufacturing cycle efficiency (MCE)
%
Quality control measures:
Number of defects
190
150
110
80
Number of warranty claims
58
38
21
16
Number of customer complaints
130
150
140
120
Material control measures:
Purchase order lead time
10 days
8 days
4 days
3 days
Scrap as a percent of total cost
3.2%
3.1%
3.2%
2.9%
Machine performance measures:
Machine downtime as a percentage of availability
81%
78%
79%
81%
Use as a percentage of availability
73%
75%
72%
70%
Setup time (hours)
2.3
2.3
2.3
2.3
Delivery performance measures:
Throughput time
?
?
?
?
Manufacturing cycle efficiency (MCE)
?
?
?
?
Delivery cycle time
?
?
?
?
Percentage of ontime deliveries
83%
86%
92%
95%
Explanation / Answer
Answer:1a
Answer:1b
Answer:1c
Answer:3a &3b
Month 1 2 3 4 Throughput time n days; Process time 0.5 0.5 0.5 0.5 Inspection time 0.4 0.6 0.5 0.6 Move time 1.5 1.4 1.4 1.5 Queue time 5.4 5.5 5.4 5.5 Total Throughput time 7.8 8 7.8 8.1