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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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CH11_HW_QA2_LA

Required 1: 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.

 

(Round your answers to 1 decimal place.)

 
 
 
 
  Throughput Time Manufacturing Cycle Efficiency (MCE) Delivery Cycle Time
Month 1   days   %   days
Month 2   days   %   days
Month 3   days   %   days
Month 4   days   %   days
 

Required 3: 3-a. (Month 5) 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. (Month 6) 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 MCE.

 

(Round your answers to 1 decimal place.)

 
 
 
 
  Month 5 Month 6
Throughput time   days   days
Manufacturing cycle efficiency (MCE)   %   %
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
4.
Quality control measures:
Number of defects
192
170
131
92
Number of warranty claims
Number of customer complaints
Material control measures:
53
46
37
34
109
103
86
65
Purchase order lead time
8 days
7 days
5 days
4 days
Scrap as a percent of total cost
Machine performance measures:
Machine downtime as a percentage of availability
1%
1%
3%
4%
5%
5%
8%
Use as a percentage of availability
Setup time (hours)
Delivery performance measures:
Throughput time
Manufacturing cycle efficiency (MCE)
Delivery cycle time
Percentage of on-time deliveries
95%
92%
89%
85%
8.
10
11
12
96%
95%
92%
89%
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)
2.
4
Wait time per order before start
of production
Inspection time per unit
Process time per unit
9.0
11.8
12.0
14.e
0.9
0.8
0.8
0.8
2.8
2.4
2.3
1.0
Queue time per unit
Move time per unit
3.9
4.4
5.3
7.3
e.4
0.6
0.6
0.9
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, glven 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, glven 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.
Transcribed Image Text: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 4. Quality control measures: Number of defects 192 170 131 92 Number of warranty claims Number of customer complaints Material control measures: 53 46 37 34 109 103 86 65 Purchase order lead time 8 days 7 days 5 days 4 days Scrap as a percent of total cost Machine performance measures: Machine downtime as a percentage of availability 1% 1% 3% 4% 5% 5% 8% Use as a percentage of availability Setup time (hours) Delivery performance measures: Throughput time Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries 95% 92% 89% 85% 8. 10 11 12 96% 95% 92% 89% 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) 2. 4 Wait time per order before start of production Inspection time per unit Process time per unit 9.0 11.8 12.0 14.e 0.9 0.8 0.8 0.8 2.8 2.4 2.3 1.0 Queue time per unit Move time per unit 3.9 4.4 5.3 7.3 e.4 0.6 0.6 0.9 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, glven 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, glven 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.
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