Montepulciano Industries is planning to change its manufacturing plant by automating and installing a flexible manufacturing system. The company is also changing its performance measures as well as its operating procedures. 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:
Many of these measures are new and the president has asked you to interpret the results. Throughput is the time it takes to turn materials into a completed product. Delivery cycle time is the time between receiving an order and shipping the goods.
Required:
Using the performance measures given, do the following:
a. Identify the areas where the company seems to be improving.
b. Identify the areas where the company seems to be deteriorating.

Question

Montepulciano Industries is planning to change its manufacturing plant by automating and installing a flexible manufacturing system. The company is also changing its performance measures as well as its operating procedures. 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:
  Many of these measures are new and the president has asked you to interpret the results. Throughput is the time it takes to turn materials into a completed product. Delivery cycle time is the time between receiving an order and shipping the goods.
Required:
Using the performance measures given, do the following: 
a. Identify the areas where the company seems to be improving.
b. Identify the areas where the company seems to be deteriorating.

Quizplus · Accepted Answer

The Answer of Montepulciano Industries is planning to change its manufacturing plant by automating and installing a flexible manufacturing system. The company is also changing its performance measures as well as its operating procedures. 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:
  Many of these measures are new and the president has asked you to interpret the results. Throughput is the time it takes to turn materials into a completed product. Delivery cycle time is the time between receiving an order and shipping the goods.
Required:
Using the performance measures given, do the following: 
a. Identify the areas where the company seems to be improving.
b. Identify the areas where the company seems to be deteriorating.

Montepulciano Industries Is Planning to Change Its Manufacturing Plant by Automating