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:

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 1 2 4 Quality control measures: Number of defects 185 163 124 91 Number of warranty claims Number of customer complaints Material control measures: 30 46 39 27 102 96 79 58 5 days 7 days 4 days Purchase order lead time 8 days 1% 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 1% 2% 3% 3% 4% 4% 6% 89% 95% 85% 92% 10 11 12 ? 96% 95% 92% 89%

Answer 1

tProcess time t 3napection time + Move time t Dueue time) sas Throughput time (91t 0.8 t 0. 3 + 2.8) days Throughput time for month 1 6 olays [2.0 t 017t 0.4t 414) days Thhoughput ime for month - 75 dlays Throughput ime for month 3 (1.9 + 0.7 t 0.4t 6.0) adays 9 days Throughpuct ime for month -( 1.8 + 0.7t 0.5 + 7:0) olays 10 dlays

b) Manutactusi ng Cycle efficieney Paocen Time X100 Throughput Time MCE for month 1- (d16) olays x100 357 MCe for month 2 (2.0 olays x100 26.677 MCE for month 3 (1.9 9) olays x l00 21.11 Mce for mnth 4(1.810) olays x lo0 187

Wait time t Thhoughput Time (9.0 t 6) day IS olays Selivery Cycle Time = Seli very Cyele Time for month 1 (1.St7.5ays Selivery Cycle time for month 2 19 dlays 12.0 t 9) oays Seli very Cycle Time for month 3 31 dlays (14.0t 10) alays pelivery Cyue Time for month y= 24 olays

3 as New throughput time tor month S Throughput time = Procen hime t 3nsp cctien time t Move time - 1.8+ 0.7 t 0 5) olays 3 olays (Pro cers timeThrougaput time) xloo (I.83) olays xloo 607 New McE tor month S 2 Procen time t Move time) b New throughput time for month 6 0.8 +0.5) days 2.3 days PaOcen tine Thaoughpuct time)x loo 1.8 .3) dlay x100 New Mce for month 6= 78.269