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    AM18

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    Venu

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    © All Rights Reserved
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    AM18

    Uploaded by

    Venu
    6 views2 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    Download as docx, pdf, or txt
    6 views2 pages

    AM18

    Uploaded by

    Venu

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Problem 10-56 (40 minute%)

    Memorandum
    Date: Today

    To: Pre%ident, %outhern Pla%tic% Corporation

    From: I. M. %tudent

    %ubject: Performance of Baton Rouge Plant

    1. The Baton Rouge Plant'% performance for the period January through June i%
    %ummarized a% follow%:

    a. Production proce%%ing and productivity:

    The plant'% cycle time (or throughput time) ha% improved over the period
    from 19 hour% to 16 hour% (average of 17.8 hour%). Thi% indicate% that
    the efficiency of the actual proce%%ing of product% ha% improved. Con%i
    %tent with thi% ob%ervation i% the reduction in %etup time from 69 to 61
    hour% (average of 64.5). However, the plant'% manufacturing cycle
    efficiency ha% declined through the period, indicating that too much time i
    % being %pent on in%pection time, waiting time, and move time, relative to
    actual proce%%ing time. Overtime hour% have increa%ed, po%%ibly due
    to higher demand late in the period. Power con%umption ha% remained
    %table.

    b. Product quality and cu%tomer acceptance:

    The plant'% quality control program appear% to be paying off. The number
    of defective unit% in fini%hed good% declined dramatically, and no
    product% were returned. Thi% i% the re%ult of the plant'% in%pector%
    more effectively identifying defective unit% while %till in proce%%. Effort
    %hould be devoted in the future to the reduction of the in-proce%%
    defective rate.

    c. Delivery performance:

    Delivery performance i% good, but could be improved. All order% were


    filled, but only an average of 95 percent of the order% were filled on time in
    May and June. Thi% might reflect increa%ed demand, a% evidenced by the
    increa%e in overtime hour%.
    PROBLEM 10-56 (CONTINUED)

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