DataSpan, Inc., automated its plant at the start of the current year and install
ID: 2341548 • Letter: D
Question
DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations Month Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 76% 84% 2530 2421 2297 2210 79% 73% 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 Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit 3.3 24.0 2.9 31.0 6.9 0.6 26.3 33.4 0.6Explanation / Answer
1a Throughput time = Process Time + Inspection Time + Move Time + Wait Time 1 2 3 4 Process time 3.3 3.1 2.9 2.7 Inspection time 0.4 0.6 0.6 0.4 Move time 0.7 0.4 0.5 0.5 Wait Time 24 26.3 31.1 33.4 Throughput Time 28.40 30.40 35.10 37.00 b Delivery cycle time = Process Time + Move Time + Inspection Time + Queue time + wait time 1 2 3 4 Process time 3.3 3.1 2.9 2.7 Inspection time 0.4 0.6 0.6 0.4 Move time 0.7 0.4 0.5 0.5 Wait Time 24 26.3 31.1 33.4 Queue Time 5.00 5.90 6.90 8.10 Delivery cycle time 33.4 36.3 42 45.1 c Manufacturing Cycle Efficiency = Value added time or process time/Manufacturing cycle time Manufacturing cycle time = Process time+Inspection time + move time + queue time 1 2 3 4 Process time 3.3 3.1 2.9 2.7 Inspection time 0.4 0.6 0.6 0.4 Move time 0.7 0.4 0.5 0.5 Queue Time 5.00 5.90 6.90 8.10 Manufacturing cycle time 9.4 10 10.9 11.7 Process time 3.3 3.1 2.9 2.7 35.11% 31.00% 26.61% 23.08% 2 The throughput time of the company is on increasing trend from month 1 to month 6 implied the company is taking more time to convert raw materials into finished goods which might effect the sales of the company and can be seen the number of units sold is reducing The companies delivery cycle time is increasing due to which the percentage of on time deliveries is reducing which is effecting the sales of the company, this is not a good indicator for the company The manufacturing cycle efficiency of the company is reducing which means the company is taking less time for value added time but the other time incurred is more 3a 5 Process time 2.7 Inspection time 0.4 Move time 0.5 Wait Time 33.4 Throughput Time 37 days 5 Process time 2.7 Inspection time 0.4 Move time 0.5 Queue Time 0.00 Manufacturing cycle time 3.6 Process time 2.7 75.00% 3b 6 Process time 2.7 Inspection time 0 Move time 0.5 Wait Time 33.4 Throughput Time 36.6 days 5 Process time 2.7 Inspection time 0 Move time 0.5 Queue Time 0.00 Manufacturing cycle time 3.2 Process time 2.7 84.38%
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