Scenario
The following chart displays the results of the first year’s production of the, Lacks Tracks Cycles, an electricpowered 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.
Metrics Standard Maryland Delaware New Jersey Texas Alaska
Total Cost to Manufacture (per unit) 13,500 15,250 14,100 12,750 16,000 14,250
Manufacturing Cycle Time (time to complete a 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%
Scrap Rate 2% 3% 4% 2.50% 2% 1.90%
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%
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. (Use as needed appropriate
in-text citation and include the references in the Reference section)
The body of the paper will cover the following:
Controls
Explain what control means in a business setting. (Use heading below and in-text citation as required)
Explain why Lacks Tracks must be concerned with the actual production metrics at its plants. (Use headings
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Control Defined
Importance of Lacks Tracks Production Metrics
Standard Specifications
Compare the metrics table standards to the actual performance outcomes at each of the five (5) plants and
explain your findings for each plant. (Use the headings below and citations and references as appropriate.)
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. (Use the headings below and citations and references
as appropriate.
Sample Solution
