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Data Screen Corporation is a highly automated manufacturing firm. The vice presi

ID: 2451632 • Letter: D

Question

Data Screen Corporation is a highly automated manufacturing firm. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor is insignificant in terms of the total cost of production and tends to be fixed, material quality is considered more important than minimizing material cost, and customer satisfaction is the number one priority. As a result, production and delivery performance measures have been chosen to evaluate performance. The following information is considered typical of the time involved to complete and ship orders. Waiting time: From order being placed to start of production 11 days From start of production to completion 10 days Inspection time 2.8 days Processing time 5.6 days Move time 3.8 days Required: 1. Calculate the manufacturing cycle efficiency. (Round your percentage answer to 1 decimal place. (i.e., 0.123 should be entered as 12.3)) 2. Calculate the delivery cycle time. (Round your answer to nearest whole number.)

Explanation / Answer

1. manfacturing Cycle time : time to taken production of finished product

: 10 + 2.8 + 5.6 + 3.8 = 22.2 days

manfacturing cycle efficiency : value added time / Manfacturing cycle time

hence value added time : thoses action whic performed to transform raw material into finished product

hence Value added time : Start of production to completion + Processing time

hence Value added time : 10 + 5.6 = 15.6 days

manfacturing cycle efficiency : 15.6/22.2 *100 = 70.27 %

2. Delivery cycle time : Wait time = manfacturing cycle time

: 11 days + 22.2 = 33.2 days