Tombro Industries is in the process of automating one of its plants and developi
ID: 2571508 • 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 Quality control measures 190 51 107 129 35 84 90 32 63 Mumber of defects 169 Number of warranty clains Humberf customer complaints 101 Material control measures 8 days 7 days 5 days 4 days Purchase order lead time Scrap as a percent of total cost Machine performance measures Machine downtime asa percentage of availability Use as a percentage of availability setup time hours) 91 10 88% 84 12 Delivery performance measures Throughput tine Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries 91 88 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 n days Nait time per order before start of production Inspection tine per unit Process time Queue tine per unit Move time 9.011.4 12.0 14.0 0.9 0.70.70- 2-8 2.01.1.2 3.0 4.35.7-4 0.3 0.0.60.7 per unit per unit 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 MCEExplanation / Answer
Throughput time = Process Time + Inspection Time + Move Time + Queue Time
Manufacturing cycle efficiency (MCE) = Process time i.e. value-added time / Throughput time
Delivery Cycle Time = Process Time + Inspection Time + Move Time + Queue Time + Wait time
Throughput Time Manufacturing Cycle Efficiency (MCE) Delivery Cycle Time Month 1 7 days 40.00% % 16 days Month 2 7.6 days 26.32% % 19 days Month 3 8 days 20.00% % 20 days Month 4 10 days 12.00% % 24 days