Tombro Industries is automating one of its plants and developing a flexible manufacturing system. In an effort to revise its performance measurement system, the company gathered the following data for the last four months: Quality control measures: Number of defects Number of warranty claims Number of customer complaints Material control measures: Purchase order lead time Scrap as a percent of total cost Machine performance measures: Machine downtime as a percentage of availability 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 Month 1 2 3 4 191 169 130 91 52 45 36 33 108 102 85 64 10 days 9 days 7 days 5 days 2% 2% 3% 6% 5% 6% 6% 10% 95% 92% 89% 85% 10 12 13 14 ? ? ? ? ? ? ? ? ? ? 96% 95% ? 92% ? 89% The president read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how to compute them. You have been asked to assist the company and gathered the following data: Average per Month (in days) 1 2 3 4 Wait time per order before start of production 10.0 12.9 13.0 15.0 Inspection time per unit 0.8 0.7 0.7 0.7 Process time per unit 2.8 2.1 2.0 1.0 Queue time per unit 3.1 4.9 5.9 7.6 Move time per unit 0.3 0.4 0.4 0.7 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 in month 5 the inspection time, process time, and so forth are the same as for month 4, except the company is able to completely eliminate the queue time 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 in month 6 the inspection time, process time, and so forth are the same as in month 4, except the company is able to eliminate the queue time and inspection time using Lean Production. Compute the new throughput time and MCE.
Tombro Industries is automating one of its plants and developing a flexible manufacturing system. In an effort to revise its performance measurement system, the company gathered the following data for the last four months: Quality control measures: Number of defects Number of warranty claims Number of customer complaints Material control measures: Purchase order lead time Scrap as a percent of total cost Machine performance measures: Machine downtime as a percentage of availability 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 Month 1 2 3 4 191 169 130 91 52 45 36 33 108 102 85 64 10 days 9 days 7 days 5 days 2% 2% 3% 6% 5% 6% 6% 10% 95% 92% 89% 85% 10 12 13 14 ? ? ? ? ? ? ? ? ? ? 96% 95% ? 92% ? 89% The president read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how to compute them. You have been asked to assist the company and gathered the following data: Average per Month (in days) 1 2 3 4 Wait time per order before start of production 10.0 12.9 13.0 15.0 Inspection time per unit 0.8 0.7 0.7 0.7 Process time per unit 2.8 2.1 2.0 1.0 Queue time per unit 3.1 4.9 5.9 7.6 Move time per unit 0.3 0.4 0.4 0.7 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 in month 5 the inspection time, process time, and so forth are the same as for month 4, except the company is able to completely eliminate the queue time 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 in month 6 the inspection time, process time, and so forth are the same as in month 4, except the company is able to eliminate the queue time and inspection time using Lean Production. Compute the new throughput time and MCE.
Practical Management Science
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ISBN:9781337406659
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Transcribed Image Text:Tombro Industries is automating one of its plants and developing a flexible manufacturing system. In an effort to revise its performance
measurement system, the company gathered the following data for the last four months:
Quality control measures:
Number of defects
Number of warranty claims
Number of customer complaints
Material control measures:
Purchase order lead time
Scrap as a percent of total cost
Machine performance measures:
Machine downtime as a percentage of availability
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
Month
1
2
3
4
191
169
130
91
52
45
36
33
108
102
85
64
10 days
9 days
7 days
5 days
2%
2%
3%
6%
5%
6%
6%
10%
95%
92%
89%
85%
10
12
13
14
?
?
?
?
?
?
?
?
?
?
96%
95%
?
92%
?
89%
The president read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but
no one is sure how to compute them. You have been asked to assist the company and gathered the following data:
Average per Month (in days)
1
2 3
4
Wait time per order before start of
production
10.0
12.9
13.0
15.0
Inspection time per unit
0.8
0.7
0.7
0.7
Process time per unit
2.8
2.1
2.0
1.0
Queue time per unit
3.1
4.9
5.9
7.6
Move time per unit
0.3
0.4
0.4
0.7
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 in month 5 the inspection time, process time,
and so forth are the same as for month 4, except the company is able to completely eliminate the queue time 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 in month 6 the inspection time, process time,
and so forth are the same as in month 4, except the company is able to eliminate the queue time and inspection time using Lean
Production. Compute the new throughput time and MCE.
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