Bauer Fabrications, Ltd., of Edinburg, Scotland, has recently begun a continuous

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 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. (Do not round your intermediate calculations and round final answers to one decimal place (i.e., 0.123 should be entered as 12.3).)

         

         

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. Round your Throughput Time to 1 decimal place. Round your MCE percentage answer to 1 decimal place (i.e., 0.123 should be entered as 12.3).)

            

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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. Round your Throughput Time to 1 decimal place. Round your MCE percentage answer to 1 decimal place (i.e., 0.123 should be entered as 12.3).)

            

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:

Explanation / Answer

1a) Throughput time can be calculated as total time taken in producton of a good that is from raw material to finished product.

1b) Manufacturing Cycle efficency = Process time / Through put time

1c) Delivery cycle time is the total time taken from receipt of order to its delivery

Time period 1 2 3 4 Process Time 0.8 1.1 1.0 0.9 Inspection time 0.8 0.9 0.7 0.7 Move time 0.8 1.0 0.8 0.6 Queue Time 4.8 4.8 3.8 2.8 Throughput time 7.2 7.8 6.3 5.0

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