DataSpan, Inc., automated its plant at the start of the current year and installed a flexible...

50.1K

Verified Solution

Question

Accounting

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
1234
Throughput time (days)????
Delivery cycle time (days)????
Manufacturing cycle efficiency(MCE)????
Percentage of on-timedeliveries79%75%72%69%
Total sales (units)2790267125342438

Management has asked for your help in computing throughput time,delivery cycle time, and MCE. The following average times have beenlogged over the last four months:

Average per Month (in days)
1234
Move time per unit0.90.60.70.7
Process time per unit3.93.73.53.3
Wait time per order before startof production24.026.329.031.4
Queue time per unit4.85.46.16.9
Inspection time per unit0.50.60.60.5


Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for eachmonth.

2. Evaluate the company’s performance over the last fourmonths.

3-a. Refer to the move time, process time, and so forth, givenfor month 4. Assume that in month 5 the move time, process time,and so forth, are the same as in month 4, except that through theuse of Lean Production the company is able to completely eliminatethe queue time during production. Compute the new throughput timeand MCE.

3-b. Refer to the move time, process time, and so forth, givenfor 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 thecompany is able to completely eliminate both the queue time duringproduction and the inspection time. Compute the new throughput timeand MCE.

Answer & Explanation Solved by verified expert
4.3 Ratings (618 Votes)
SOLUTION 1A Month 1 Month 2 Month 3 Month 4 Process time 39 37 35 33 Inspection time 05 06 06 05 Move time 09 06 07 07 Queue time 48 54 61 69 Throughput time 101 103    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students