Question: Help please help!!! +P10-15 Operating Performance Measures MacIntyre Fabrications, Ltd., of Aber- deen Scotland has recently begun a continuous improvement campaign in conjunction with a
+P10-15 Operating Performance Measures MacIntyre Fabrications, Ltd., of Aber- deen Scotland has recently begun a continuous improvement campaign in conjunction with a move toward JIT production and purchasing. Management has developed new performance measures as part of this campaign. The following operating data have been gathered over the last four months: Month Quality control measures: Customer complaints as a percentage of units sold Warranty claims as a percentage of units sold . . . . . . . Defects as percentage of units produced . . . . . . . . . . . 18% 3.6% 2.1% 6% 1.5% 2.9% 1 .6% 2.8% 1.4% Material control measures: Purchase order lead time (days) . scrap as a percentage of total cost 1.2% 1.0% 0.9% 0.7% Inventory control measures Raw materials turnover (times).. Finished goods turnover (times) . 10 14 18 Machine performance measures: .. 22% 65% 18% 62% 5.2 13% 58% Percentage of machine downtime 14% 59% 3.5 . . Delivery perfor mance measures: Throughput time, or velocity .? Manufacturing cycle efficiency nce. How .nwa ?at Delivery cycle time Percentage of on-time deliveries... Total throughput (units) ? 73% 72% 78% 85% 10,540 10,570 10,550 10,490 Management would like to know the company's throughput time, manufacturing cycle cycle time. The data to compute these measures have been gathered efficiency, and delivery and appear below: Month Move time per unit, in days . 0.5 0.s 0.4 0.5 Process time per unit, in days .0.6 0.5 0.5 0.4 Wait time per order before start of production, in days9.6 8.7 5.3 4.7 Queue time per unit, in days ...3.6 3.62.6 .7 Inspection time per unit, in days.7 0.7 04 0.3
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