56. Award: 10.00 points Problems? Adjust credit for all students.

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 3 4
Quality control measures:
Number of defects 185 163 124 91
Number of warranty claims 46 39 30 27
Number of customer complaints 102 96 79 58
Material control measures:
Purchase order lead time 8 days 7 days 5 days 4 days
Scrap as a percent of total cost 1% 1% 2% 3%
Machine performance measures:
Machine downtime as a percentage of availability 3% 4% 4% 6%
Use as a percentage of availability 95% 92% 89% 85%
Setup time (hours) 8 10 11 12
Delivery performance measures:
Throughput time ? ? ? ?
Manufacturing cycle efficiency (MCE) ? ? ? ?
Delivery cycle time ? ? ? ?
Percentage of on-time deliveries 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)
1 2 3 4
Wait time per order before start
of production 9.0 11.5 12.0 14.0
Inspection time per unit 0.8 0.7 0.7 0.7
Process time per unit 2.1 2.0 1.9 1.8
Queue time per unit 2.8 4.4 6.0 7.0
Move time per unit 0.3 0.4 0.4 0.5

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 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, 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.

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 Complete this question by entering your answers in the tabs below.

Required 1 Required 3

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.)
Show less 

Manufacturing Cycle
Throughput Time Delivery Cycle Time
Efficiency (MCE)
Month 1 6.0 days 35.0 % 15.0 days
Month 2 7.5 days 26.7 % 19.0 days
Month 3 9.0 days 21.1 % 21.0 days
Month 4 10.0 days 18.0 % 24.0 days

 Required 1 Required 3 

 
Explanation:

1.
a., b., & c.

Month
1 2 3 4
Throughput time in days:
Process time 2.1 2.0 1.9 1.8
Inspection time 0.8 0.7 0.7 0.7
Move time 0.3 0.4 0.4 0.5
Queue time during production 2.8 4.4 6.0 7.0
Total throughput time 6.0 7.5 9.0 10.0
Manufacturing cycle efficiency (MCE):
Process time ÷ Throughput time 35.0% 26.7% 21.1% 18.0%
Delivery cycle time in days:
Wait time to start of production 9.0 11.5 12.0 14.0
Throughput time 6.0 7.5 9.0 10.0
Total delivery cycle time 15.0 19.0 21.0 24.0

3.
a. & b.

Month
5 6
Throughput time in days:
Process time 1.8 1.8
Inspection time 0.7 0.0
Move time 0.5 0.5
Queue time 0.0 0.0
Total throughput time 3.0 2.3
Manufacturing cycle efficiency (MCE):
Process time ÷ Throughput time 60.0% 78.3%

As non-value-added activities are eliminated, the manufacturing cycle efficiency improves. The goal, of course, is to have an efficiency
of 100%. This is achieved when all non-value-added activities have been eliminated and process time equals throughput time.

References

Worksheet Difficulty: 2 Medium Learning Objective: 11-03 Compute throughput time,

delivery cycle time, and manufacturing cycle efficiency
(MCE).

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 56. Award: 10.00 points Problems? Adjust credit for all students.

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 3 4
Quality control measures:
Number of defects 185 163 124 91
Number of warranty claims 46 39 30 27
Number of customer complaints 102 96 79 58
Material control measures:
Purchase order lead time 8 days 7 days 5 days 4 days
Scrap as a percent of total cost 1% 1% 2% 3%
Machine performance measures:
Machine downtime as a percentage of availability 3% 4% 4% 6%
Use as a percentage of availability 95% 92% 89% 85%
Setup time (hours) 8 10 11 12
Delivery performance measures:
Throughput time ? ? ? ?
Manufacturing cycle efficiency (MCE) ? ? ? ?
Delivery cycle time ? ? ? ?
Percentage of on-time deliveries 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)
1 2 3 4
Wait time per order before start
of production 9.0 11.5 12.0 14.0
Inspection time per unit 0.8 0.7 0.7 0.7
Process time per unit 2.1 2.0 1.9 1.8
Queue time per unit 2.8 4.4 6.0 7.0
Move time per unit 0.3 0.4 0.4 0.5

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 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, 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.

This study source was downloaded by 100000831882332 from CourseHero.com on 11-25-2022 07:12:28 GMT -06:00

https://www.coursehero.com/file/44130520/Managerial-ACCT-Quiz-240pdf/
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