Park Electronics Company is known for its high-quality products and on time deliveries. Six months ago, it
Question:
Park Electronics Company is known for its high-quality products and on time deliveries. Six months ago, it installed a computer-integrated manufacturing system in its Sensitive Components Department. The new equipment produces the entire component, so the finished product is ready to be shipped when needed. During the past eight-week period, the controller’s staff gathered the data that appear at the top of the next page.
Required
1. Analyze the performance of the Sensitive Components Department for the eight-week period. Focus on performance in the following areas:
(a) Production performance,
(b) Delivery cycle time, and
(c) Customer satisfaction. Carry your answers to two decimal places.
2. Summarize your findings in a report to the department’s superintendent, AndréPark.
Week verage process 10.90 10.80 2.80 26.10 25.90 97.20 11.20 .80 2.40 26.20 26.60 97.40 96.20 12.20 13.60 time (hours) Average setup 11.10 10.60 time (hours) Customer complaints Delivery time (hours) Equipment 2.20 27.10 26.40 96.40 95.30 106.40 108.10 20.20 0.40112.80 02.20 24.60 136.20 80.40 88.20 92.60 10,2460,288 10,450 10,680 10,880 80 ,350 12,100 19.80 21.80 12.60 2.50 2.60 10 26.40 2.60 23 2.70 2.20 26.20 utilization rate (%) (hours) time (hours) deliveries (%) backlog (units) time (hours) lead time (hours) 96.20 96.10 96.30 Machine downtime Machine maintenance 64.80 66.70 72.60 74.20 76.80 66.60 On-time Production Production cycle 97.20 97.50 97.60 98.20 98.40 96.40 94.80 16.50 16.40 16.30 16.10 16.30 17.60 15.20 15.10 8 14.90 14.60 14.60 13.20 2.40 Warranty claims 2. Summarize your findings in a report to the department's superintendent, André Park.
Step by Step Answer:
The data given were reorganized in the following manner and for illustrative purposes two additional pieces of information not provided in the problemdelivery cycle time and waste timewere calculated from the given information 1 Department performance analyzed Week Weekly 1 2 3 4 5 6 7 8 Average Production performance Equipment utilization rate 9620 9610 9630 9720 9740 9620 9640 9530 9639 Machine downtime hours 10640 10810 12020 11040 11280 10220 12460 13620 11511 hours Machine maintenance time hours 6480 6670 7260 7420 7680 6660 8040 8820 7379 hours Delivery cycle time Average process time hours a 1090 1110 1060 1080 1120 1180 1220 1360 1153 hours Average setup time hours b 250 260 260 280 270 240 220 220 250 hours Delivery time hours c 2620 2640 2610 2590 2620 2660 2710 2640 2636 hours Production backlog units 10246 10288 10450 10680 10880 11280 11350 12100 10909 units Production cycle time hours d 1650 1640 1630 1610 1630 1760 1980 2180 1760 hours Purchaseorder lead time hours e 1520 1510 1490 1460 1460 1320 1240 1260 1408 hours Ontime deliveries 9720 9750 9760 9820 9840 9640 9480 9260 9659 Delivery cycle time cde 5790 5790 5730 5660 5710 5740 5930 6080 5804 hours Waste time dab 310 270 310 250 240 340 540 600 358 hours Customer satisfaction Customer complaints 11 10 23 15 9 7 5 6 1075 complaints Warranty claims 4 8 2 1 6 4 2 3 375 claims 2 Report to department superintendent prepared To Andr Park From Students name Topic Performance of the Sensitive Components Department Date Todays date My analysis of the operating data for the Sensitive Components Department for the last eight weeks revealed the following Production performance Overall machine performance has deteriorated in recent weeks Equipment utilization is down Machine downtime is way up as is machine maintenance time A special analysis of maintenance and downtime needs to be conducted Delivery cycle time We seem to be having some trouble in the product delivery area The delivery cycle time is increasing the production backlog is going up at an alarming rate and the ontime delivery rate is down In contrast purchase order lead time is good and delivery time is on track Setup time is excellent so the problem ...View the full answer
Managerial Accounting
ISBN: 978-0618777181
8th Edition
Authors: Susan V. Crosson, Belverd E. Needles
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