Fantastic Plastics Ltd manufactures a range of moulded plastic products, such as kitchen utensils and desk...

  

 

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Fantastic Plastics Ltd manufactures a range of moulded plastic products, such as kitchen utensils and desk accessories. The production process in the Port Pirie plant is highly automated. The plant uses a just-in-time production management system. An automatic material-handling system is used to transport products between production operations. Each month the accountant prepares a production efficiency report, which is sent to corporate headquarters. The data compiled in these reports, for the first six months of the current year, follow: Fantastic Plastics Ltd: Port Pirie plant Production Efficiency Report 1 January to 30 June Jan. Feb. Mar. 83 72 21 Apr. May 94 Jun. Average 87.3 72.0 20.8 92.8 89.3 5.32% 59.5 Overtime hours Total setup time (hours) Cycle time (average in hours) Percentage of orders filled Percentage of on-time deliveries Inventory value/sales revenue Number of defective units, finished goods Number of defective units, In process Number of raw material shipnents with defective materials Number of products returned Power consumption (kilowatt hours, 'eons) Machine downtime (hours) Bottleneck machine downtime" (hours) Number of unscheduled machine maintenance calIs 66 77 116 68 77 77 70 68 22 22 20 21 19 95 95 97 90 90 90 4.40% 94 88 88 88 5.50% 5. S0% 5.50x 5.50% 90 5.50% 88 83 44 28 24 1 33 39 44 66 66 43.2 2 1.3 880 379.7 880 33 13 875 28 881 882 28 22 22 11 24.0 18 14,8 1.0 11 18 11 * The concept of bottlenecks is explained in Chapter 16. Required: • Write a memo to the managing director of Fantastic Plastics, evaluating the performance of the Port Pirie plant Structure your report by dividing it into the following parts: • Production processing and productivity. • Product quality and customer satisfaction. • Delivery performance. • Raw material, scrap and inventory • Machine maintenance. (Some measures may be relevant to more than one area of performance) • Identify any areas of concern in your memo and suggest appropriate action for management, Fantastic Plastics Ltd manufactures a range of moulded plastic products, such as kitchen utensils and desk accessories. The production process in the Port Pirie plant is highly automated. The plant uses a just-in-time production management system. An automatic material-handling system is used to transport products between production operations. Each month the accountant prepares a production efficiency report, which is sent to corporate headquarters. The data compiled in these reports, for the first six months of the current year, follow: Fantastic Plastics Ltd: Port Pirie plant Production Efficiency Report 1 January to 30 June Jan. Feb. Mar. 83 72 21 Apr. May 94 Jun. Average 87.3 72.0 20.8 92.8 89.3 5.32% 59.5 Overtime hours Total setup time (hours) Cycle time (average in hours) Percentage of orders filled Percentage of on-time deliveries Inventory value/sales revenue Number of defective units, finished goods Number of defective units, In process Number of raw material shipnents with defective materials Number of products returned Power consumption (kilowatt hours, 'eons) Machine downtime (hours) Bottleneck machine downtime" (hours) Number of unscheduled machine maintenance calIs 66 77 116 68 77 77 70 68 22 22 20 21 19 95 95 97 90 90 90 4.40% 94 88 88 88 5.50% 5. S0% 5.50x 5.50% 90 5.50% 88 83 44 28 24 1 33 39 44 66 66 43.2 2 1.3 880 379.7 880 33 13 875 28 881 882 28 22 22 11 24.0 18 14,8 1.0 11 18 11 * The concept of bottlenecks is explained in Chapter 16. Required: • Write a memo to the managing director of Fantastic Plastics, evaluating the performance of the Port Pirie plant Structure your report by dividing it into the following parts: • Production processing and productivity. • Product quality and customer satisfaction. • Delivery performance. • Raw material, scrap and inventory • Machine maintenance. (Some measures may be relevant to more than one area of performance) • Identify any areas of concern in your memo and suggest appropriate action for management,

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MEMO DATE JUNE 30 TO MANAGING DIRECTOR FROM PORT PIRIE PLANT SUBJECT PRODUCTION EFFICIENCY REPORT PRODUCTION PROSESSING AND PRODUCTIVITY The total setup time in hours for the month of January is 77 an... View the full answer