Bauer Fabrications, Ltd., of Edinburg, Scotland, has recently begun a continuous
ID: 2355780 • Letter: B
Question
Bauer Fabrications, Ltd., of Edinburg, Scotland, has recently begun a continuous improvement campaign in conjunction with a move toward Lean Production. Management has developed new performance measures as part of this campaign. The following operating data have been gathered over the last four months:
Month
Management would like to know the companys throughput time, manufacturing cycle efficiency, and delivery cycle time. The data to compute these measures have been gathered and appear below:
Month
Compute the manufacturing cycle efficiency (MCE) for each month. (Do not round your intermediate calculations and round final answers to one decimal place.)
Assume that in month 5 the move time, process time, and so forth, are the same as for month 4, except that through the implementation of Lean Production, the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE. (Do not round your intermediate calculations and round final answers to one decimal place.)
Assume that in month 6 the move time, process time, and so forth, are the same as for 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. (Do not round your intermediate calculations and round final answers to one decimal place.)
Month
1 2 3 4 Throughput time ? ? ? ? Manufacturing cycle efficiency ? ? ? ? Delivery cycle time ? ? ? ? Percentage of on-time deliveries 79% 80% 85% 92% Total sales (units) 10,410 10,590 10,530 10,420Explanation / Answer
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