Tombro Industries is in the process of automating one of its plants and developi
ID: 2589129 • 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
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)
Required:
1-a. Compute the throughput time for each month. (Round your answers to 1 decimal place.)
1-b. Compute the manufacturing cycle efficiency (MCE) for each month. (Round your answers to 1 decimal place.)
1-c. Compute the delivery cycle time for each month. (Round your answers to 1 decimal place.)
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. (Round your answers to 1 decimal place.)
3-b. 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 answers to 1 decimal place.)
Month
1 2 3 4 Quality control measures: Number of defects 191 169 130 91 Number of warranty claims 52 45 36 33 Number of customer complaints 108 102 85 64 Material control measures: Purchase order lead time 10 days 9 days 7 days 5 days Scrap as a percent of total cost 2 % 2 % 3 % 6 % Machine performance measures: Machine downtime as a percentage of availability 5 % 6 % 6 % 10 % Use as a percentage of availability 95 % 92 % 89 % 85 % Setup time (hours) 10 12 13 14 Delivery performance measures: Throughput time ? ? ? ? Manufacturing cycle efficiency (MCE) ? ? ? ? Delivery cycle time ? ? ? ? Percentage of on-time deliveries 96 % 95 % 92 % 89 %Explanation / Answer
1-a. Throughput time=Process time+inspection time+move time+queue time Month 1 2 3 4 Process time 2.8 2.1 2 1 Inspection time 0.8 0.7 0.7 0.7 Move time 0.3 0.4 0.4 0.7 Queue time 3.1 4.9 5.9 7.6 Throughput time 7 8.1 9 10 days days days days 1-b. Manufacturing cycle efficiency=Process time/Throughput time Month 1 2 3 4 Process time 2.8 2.1 2 1 Throughput time 7 8.1 9 10 Manufacturing cycle efficiency 40.00% 25.93% 22.22% 10.00% 1-c. Delivery cycle time=Wait time+Throughput time Month 1 2 3 4 Wait time 10 12.9 13 15 Throughput time 7 8.1 9 10 Delivery cycle time 17 21 22 25 days days days days 3-a. Throughput time=Process time+inspection time+move time+queue time Month 5 Process time 1 Inspection time 0.7 Move time 0.7 Queue time 0 Throughput time 2.4 days Manufacturing cycle efficiency=Process time/Throughput time Month 5 Process time 1 Throughput time 2.4 Manufacturing cycle efficiency 41.67% 3-b. Throughput time=Process time+inspection time+move time+queue time Month 6 Process time 1 Inspection time 0 Move time 0.7 Queue time 0 Throughput time 1.7 days Manufacturing cycle efficiency=Process time/Throughput time Month 6 Process time 1 Throughput time 1.7 Manufacturing cycle efficiency 58.82%