The following chart displays the results of the first year’s production of the, Lacks Tracks Cycles, an electric-powered chopper-style motorcycle being produced by Lacks Tracks Cycles to compete with Harley-Davidson’s Electra Glide. The metrics table below was created from data supplied by Lacks Tracks Cycles five (5) plants. The purpose of the table is to provide data for management to decide what controls and actions are needed to increase production efficiency.
You recently joined the Lacks Tracks Cycles’ headquarters staff as a quality assurance associate. Your manager has requested you to do an analysis of the first year’s motorcycle production results. This information will be used by management to evaluate and improve overall production efficiency.
Lacks Tracks Cycles is known for producing high quality products at reasonable prices. They plan to compete against Harley’s top-end model by developing superior production efficiency that will allow them to price significantly below Harley Davidson’s Electra Glide model.
The chart below lists the desired production standards and the actual production metrics for each stage of the electric-motorcycle’s manufacturing process that needs to be completed to determine the overall production efficiency at each of Lacks Tracks Cycles’ five (5) production facilities.
A comparison of the production standard to the actual production outcomes using all the relevant metrics allows management to determine which of its facilities is the most efficient producer of the electric motorcycle. This knowledge will help Lacks Tracks Cycles’ management team to determine what controls need to be put into place at their various production plants to match the production efficiency of their most efficient plant. More efficiency means higher production at lower per unit (cycle) costs.
|Total Cost to Manufacture (per unit)||13,500||15,250||14,100||12,750||16,000||14,250|
|Manufacturing Cycle Time (time to complete single vehicle – in hours)||15||18||16||12||12||14|
|Yield (percentage of cars produced to specifications first time without rework)||98%||99%||97%||96.50%||97.50%||95.15%|
|Defective Rate/Recall Rate||2%||1%||3%||3.50%||2.50%||4.85%|
|Average Production Downtime||0.50%||1%||1.50%||0.75%||0.50%||0.75%|
|Training Time (hours per month)||8||6||3||5||7||4|
|Shipping Problems/Damage (per 10,000 units)||1||2||4||2||1||3|
|Safety Incident per Employee||1.50%||2.25%||0.75%||3%||2%||1.90%|
|Number of units manufactured per year||45,000||43,000||27,000||42,500||48,000||45,500|
|Utilization Rate (Capacity rate facility is utilizing during available production time)||81.82%||78.18%||49.09%||77.27%||87.27%||82.73%|
Use the following headings and instructions to complete the project:
- Write an Introduction paragraph.The Introduction paragraph is the first paragraph of the paper and will be used to describe to the reader the intent of the paper explaining the main points covered in the paper. This intent should be understood prior to reading the remainder of the paper so the reader knows exactly what is being covered in the paper. The introduction is often written after the paper is completed.
The body of the paper will cover the following:
- Explain what control means in a business setting.
- Explain why Lacks Tracks must be concerned with the actual production metrics at its plants.
- Compare the metrics table standards to the actual performance outcomes at each of the five (5) plants and explain your findings for each plant.
- Identify the four (4) most important and common deviations from the standards among the plants and explain why this data is important to Lacks Tracks management.
- Using course materials identify and explain two (2) types of controls that could be used by Lacks Tracks management to attempt to correct the deviations from standards at its plants.
Total Quality Management
- Explain why the implementation of a Total Quality Management (TQM) program could improve operational efficiency at Lacks Tracks.
Create a concluding paragraph. The conclusion paragraph highlights the major findings covered in the paper.
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