DataSpan, Inc., automated its plant at the start of the currentyear and installed a flexible manufacturing system. The company isalso evaluating its suppliers and moving toward Lean Production.Many adjustment problems have been encountered, including problemsrelating to performance measurement. After much study, the companyhas decided to use the performance measures below, and it hasgathered data relating to these measures for the first four monthsof operations.
| Month |
| 1 | 2 | 3 | 4 | |
| Throughput time (days) | ? | ? | ? | ? | |
| Delivery cycle time (days) | ? | ? | ? | ? | |
| Manufacturing cycle efficiency (MCE) | ? | ? | ? | ? | |
| Percentage of on-time deliveries | 82% | 77% | 74% | 71% | |
| Total sales (units) | 3830 | 3667 | 3479 | 3347 | |
|
Management would like to know the company's throughput time,manufacturing cycle efficiency, and delivery cycle time. The datato compute these measures have been gathered and appear below: |
| Average per Month (in days) |
| 1 | 2 | 3 | 4 |
| Move time per unit | 0.8 | | 0.5 | | 0.6 | | 0.6 | |
| Process time per unit | 2.3 | | 2.2 | | 2.1 | | 2.0 | |
Wait time per order before start
of production | 24. | | 26.3 | | 29.0 | | 31.4 | |
| Queue time per unit | 4.4 | | 5.0 | | 5.7 | | 6.5 | |
| Inspection time per unit | 0.9 | | 1.1 | | 1.1 | | 0.9 | |
|
| Requirement 1: |
| (a) | Compute the throughput time for each month. (Round youranswers to 1 decimal place.) |
| 1 | 2 | 3 | 4 |
| Total throughput time | _________ | _________ | _________ | _________ |
|
| (b) | Compute the manufacturing cycle efficiency (MCE) for each month.(Round your answers to 1 decimal place. Omit the "%" signin your response.) |
| 1 | 2 | 3 | 4 |
| Manufacturing cycle efficiency (MCE) | _________% | _________% | _________% | _________% |
|
| (c) | Compute the delivery cycle time for each month. (Roundyour answers to 1 decimal place.) |
| 1 | 2 | 3 | 4 |
| Total delivery cycle time | _________ | _________ | _________ | _________ |
|
| Requirement 2: |
| Refer to the move time, process time, and so forth,given above for month 4. |
| (a) | Assume that in month 5 the move time, process time, and soforth, are the same as in month 4, except that through the use ofLean Production the company is able to completely eliminate thequeue time during production. Compute the new throughput time andMCE. (Round your answers to 1 decimal place. Omit the "%"sign in your response.) |
| Total throughputtime _________ | |
| Manufacturing cycle efficiency (MCE) _________% | |
| (b) | Assume in month 6 that the move time, process time, and soforth, are again the same as in month 4, except that the company isable to completely eliminate both the queue time during productionand the inspection time. Compute the new throughput time and MCE.(Round your answers to 1 decimal place. Omit the "%" signin your response.) |
| Total throughput time _________ | |
| Manufacturing cycle efficiency (MCE) _________% | |
requirement 3
3-a. (Month 5) Refer to the move time, process time, and soforth, given for month 4. Assume that in month 5 the move time,process time, and so forth, are the same as in month 4, except thatthrough the use of Lean Production the company is able tocompletely eliminate the queue time during production. Compute thenew throughput time and MCE.
3-b. (Month 6) Refer to the move time, process time, and soforth, given for month 4. Assume in month 6 that the move time,process time, and so forth, are again the same as in month 4,except that the company is able to completely eliminate both thequeue time during production and the inspection time. Compute thenew throughput time and MCE.
(Round your answers to 1 decimal place.)
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| | Month 5 | Month 6 | | Throughput time | | days | | days | | Manufacturing cycle efficiency (MCE) | | % | | % |
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