Operational Performance Measures

Mid States Metal Finishers produces steel tubing at its Akron plant. The plant’s quality assurance officer prepares a monthly report and sends it to headquarters. The data compiled in these reports for a recent six month period follow:

MID STATES METAL FINISHERS

Production Efficiency Report

 

Month

Jan

Feb

Mar

Apr

May

Jun

Percentage of orders filled on time

87

86

88

92

91

92

Number of defective units, as a percent of total

7

6

2

1

3

2

Number of customer returns

20

21

18

10

6

5

Required

a. Write a memo to the company president evaluating the plant’s performance.

b. If you identify any areas of concern in your memo, indicate an appropriate action for management to take. Indicate any additional information you would like to have to make your evaluation.