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.