Tombro Industries is in the process of automating one of itsplants and developing a flexible manufacturing system. The companyis finding it necessary to make many changes in operatingprocedures. Progress has been slow, particularly in trying todevelop new performance measures for the factory.
In an effort to evaluate performance and determine whereimprovements can be made, management has gathered the followingdata relating to activities over the last four months:
| Month |
| 1 | 2 | 3 | 4 |
Quality control measures: | | | | | | | | |
Number ofdefects | 185 | | 163 | | 124 | | 91 | |
Number ofwarranty claims | 46 | | 39 | | 30 | | 27 | |
Number ofcustomer complaints | 102 | | 96 | | 79 | | 58 | |
Material controlmeasures: | | | | | | | | |
Purchase orderlead time | 8days | 7days | 5days | 4days |
Scrap as apercent of total cost | 1 | % | 1 | % | 2 | % | 3 | % |
Machineperformance measures: | | | | | | | | |
Machine downtimeas a percentage of availability | 3 | % | 4 | % | 4 | % | 6 | % |
Use as apercentage of availability | 95 | % | 92 | % | 89 | % | 85 | % |
Setup time(hours) | 8 | | 10 | | 11 | | 12 | |
Deliveryperformance measures: | | | | | | | | |
Throughputtime | ? | | ? | | ? | | ? | |
Manufacturingcycle efficiency (MCE) | ? | | ? | | ? | | ? | |
Delivery cycletime | ? | | ? | | ? | | ? | |
Percentage ofon-time deliveries | 96 | % | 95 | % | 92 | % | 89 | % |
|
The president has read in industry journals that throughputtime, MCE, and delivery cycle time are important measures ofperformance, but no one is sure how they are computed. You havebeen asked to assist the company, and you have gathered thefollowing data relating to these measures:
| Average per Month (in days) |
| 1 | 2 | 3 | 4 |
Waittime per order before start of production | 9.0 | 11.5 | 12.0 | 14.0 |
Inspection timeper unit | 0.8 | 0.7 | 0.7 | 0.7 |
Process time perunit | 2.1 | 2.0 | 1.9 | 1.8 |
Queue time perunit | 2.8 | 4.4 | 6.0 | 7.0 |
Move time perunit | 0.3 | 0.4 | 0.4 | 0.5 |
|
Required:
1-a. Compute the throughput time for each month.
1-b. Compute the manufacturing cycle efficiency (MCE) for eachmonth.
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, exceptthat the company is able to completely eliminate the queue timeduring production using Lean Production. Compute the new throughputtime 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 thatthe company is able to eliminate both the queue time duringproduction and the inspection time using Lean Production. Computethe new throughput time and MCE.