Pittsburgh Plastics Corporation manufactures a range of molded plastic products, such as kitchen utensils and desk accessories. The production process in the North Hills plant is a JIT system, which operates in four FMS cells. An AMHS is used to transport products between production operations. Each month, the controller prepares a production efficiency report, which is sent to corporate headquarters. The data compiled in these reports, for the first six months of the year. are as follows:
PRODUCTLON EFFICIENCYREPORT Pittsburgh Plastics Corporation North Hills Plant January through June | |||||||
| Jan | Feb | Mar | Apr | May | June | Average |
Overtime hours | 60 | 70 | 75 | 80 | 85 | 105 | 79.2 |
Total setup time | 70 | 70 | 65 | 64 | 62 | 62 | 65.5 |
Cycle time(average in hours) | 20 | 20 | 19 | 18 | 19 | 17 | 18.8 |
Manufacturing-cycle efficiency. | 95% | 94% | 96% | 90% | 89% | 90% | 92.3% |
Percentage of orders filled | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
Percentage of on-time deliveries | 99% | 98% | 99% | 100% | 96% | 94% | 97.7% |
Inventory value/sales revenue | 5% | 5% | 5% | 4% | 5% | 5% | 4.8% |
Number of defective units, finished goods | 80 | 82 | 75 | 40 | 25 | 22 | 54 |
Number of defective units, in process | 10 | 30 | 35 | 40 | 60 | 60 | 39.2 |
Number of raw-material shipments with defective materials | 3 | 3 | 2 | 0 | 0 | 0 | 1.3 |
Number of products returned | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
.Aggregate productivity | 1.3 | 1.3 | 1.2 | 1.25 | 1.2 | 1.15 | 1.23 |
Power consumption (thousands of kilowatt-hours) | 800 | 795 | 802 | 801 | 800 | 800 | 800 |
Machine downtime (hours) | 30 | 25 | 25 | 20 | 20 | 10 | 21.7 |
Bottleneck machine downtime | 0 | 0 | 2 | 0 | 15 | 2 | 3.2 |
Number of unschecued machine maintenance calls | 0 | 0 | 1 | 0 | 2 | 3 | 1 |
Required:
1. Writ e a memo to the company president evaluating the North Hills plant’s performance. Structure your report by dividing it into the following parts: (a) production processing and productivity:(b) product quality and customer acceptance; (c) delivery performance; (d) raw material. scrap. and inventory: and (e) machine maintenance.
2. If you identify any areas of concern in your memo, indicate an appropriate action for management.
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