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 rei t o activities over the last four months: 176 137 198 59 115 109 9 days 7 days 5 days 10 days 15 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 percentage of availability Use as percentage of availability Setup time (hours) Delivery performance measures: Throughout time Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries 5% 99% 95% 92% 85% 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)

Answer 1

Throughput Time manufacturing Cycle Efficiency Delivery cycle. Time EMCEL Month 1 days 8.8 days Month 2 Month 3 35.00 % 30.68 2 24.00 % 10.00 % 17 20 22 25 days days days days 10 11 days days, Month y Month 5 month 6 Throughput time 216 days 1.8 days Manufacturing Cycle efficiency (MCE) (12.31 % 61.11 % Calculation: (I) (as Throughput time = (Process time & Inspection time & more time & Oueue time) Throughput time for month 1 = (2.0 t o.g+ 0.4+3.g) days = 8 days Throughput time for month 2 = (217+0.8+ 0.6+4.7) days - 8.8 days Throughput time for month 3 for month 3 = (2.4+ 0.8+ 0.6+ = 12.4 + oid + 0.6+ 6.2) days = 10 days Throughput time for month u = (111+ oldt 0.7 + 8.4) days = 11 days

by manufactu Manufacturing Cycle Efficiency - Process Time & 100 Throughput time Mce for month 1 = (2,8 + 8) days x 100 = 35% for month 2 = (217 - 8.8) days x 100 = 30.68% MCE MCE for month 3 = (214 & 10) days x 100 = 24% MCE for month 4 = (1.1 - 11) days x 100 = 10%. (C) Delivery cycle Time & wait time & Throughput time Delivery cycle Time for month 1 = (9.0 + 8) days = 17 days Delivery Cycle Time for month 2 = (11.2 + 808) days = 20 days Delivery Cycle Time for month 3 = (1.0 + 10) days - 22 days Delivery Cycle Time for month 4 = (14.0t 11 days = 25 days

New Throughput time for month 5 - Process timet Inspection time t. more time = (1.1 +0.8+ 0.7 days - 2.6 days for month 5 - Process time x 100 Throughput time = (1.1 2.6) days x 100 = 42.31% New MCE Zb) new throughput time for month 6 - (Process time t more time) = 11.1+ 0.7 days - 1.8 days New MCE for mont ocess time & Throughput time) x 100 = ((1.1 - 1.8) x100] - 61.11%