MacIntyre Fabrications, Ltd., of Aberdeen, Scotland, has recently begun a contin

Question

MacIntyre Fabrications, Ltd., of Aberdeen, 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 company's 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. (Round your intermediate calculations and 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. (Round your intermediate calculations and 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. (Round your intermediate calculations and final answers to one decimal place.)

MacIntyre Fabrications, Ltd., of Aberdeen, 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:

Explanation / Answer

Solution -

1 a - Throughput time = Move time + Process time + Queue time + Inspection time . Total time needed to convert raw materials into finished product is known as throughput time. It includes value added as well as non value added time . It does not include the Wait time

1 b - Manufacturing cycle efficiency (MCE) = Value Added Time / Throughput time . manufacturing cycle efficiency is Total value added time as compared to total Time or Throughout time

1 c - Delivery cycle time = All Time or Wait Time + Thoughput time . Total Time needed from the time an order is received from the customer to the time when order is shipped is known as delivery cycle time. It includes even the wait time

Blow are the calculation for all the three above

3 a -

3 b -

Month 1 2 3 4 A Move time per unit, in days 0.7 0.3 0.7 0.4 B Process time per unit, in days 0.6 0.8 0.5 0.7 C Wait time per order before start   of production, in days 9.6 8 5 4 D Queue time per unit, in days 3 3 2 1 E Inspection time per unit, in days 0.5 0.7 0.4 0.3 TT Throughput time = A + B + D + E 4.8 4.8 3.6 2.4 MCE Manufacturing cycle efficiency (MCE) = % of B / T 12.5% 16.7% 13.9% 29.2% DCT Delivery cycle time = A+B+C+D+E or TT + C 14.4 12.8 8.6 6.4

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