Management has asked for your help in computing throughput time, delivery cycle time, and MCE....
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Accounting
Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:
Average per Month (in days)
1
2
3
4
Move time per unit
0.7
0.4
0.5
0.5
Process time per unit
3.0
2.8
2.7
2.5
Wait time per order before start of production
23.0
25.2
28.0
30.3
Queue time per unit
4.2
4.7
5.3
6.0
Inspection time per unit
0.9
1.1
1.1
0.9
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 each month.
2. Evaluate the companys performance over the last four months.
3-a. Refer to the move time, process time, and so forth, 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 that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.
3-b. Refer to the move time, process time, and so forth, 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 the queue time during production and the inspection time. Compute the new throughput time and MCE.
Required 1
Required 2
Required 3
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 each month.
Round your answers to 1 decimal place.)
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Throughput Time
Delivery Cycle Time
Manufacturing Cycle Efficiency (MCE)
Month 1
days
days
%
Month 2
days
days
%
Month 3
days
days
%
Month 4
days
days
%
Evaluate the companys performance over the last four months. (Indicate the effect of each trend by selecting "Favorable" or "Unfavorable" or "None" for no effect (i.e., zero variance).
The Throughput Time measure displays
trends
The Delivery cycle time measure displays
trends
Manufacturing cycle efficiency measure displays
trends
3-a. (Month 5) Refer to the move time, process time, and so forth, 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 that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.
3-b. (Month 6) Refer to the move time, process time, and so forth, 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 the queue time during production and the inspection time. Compute the new throughput time and MCE.
(Round your answers to 1 decimal place.)
Show less
Month 5
Month 6
Throughput time
days
days
Manufacturing cycle efficiency (MCE)
%
%
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