ng problems relating to performance mea has gathered data relating to these meas

Question

ng problems relating to performance mea has gathered data relating to these measures for the first four months of operations. nt. After much study, the company has decided to use the performance measures below, and it Throughput tine (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) 98% 84% 81% 78 2410 2307 2189 2106 Management has ask been logged over the last four months: ed for your help in computing throughput time, delivery cycle time, and MCE. The following average times have Average per Month (in days) 0.5 .9 3.6 3.4 3.2 3.0 Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit 18. 19.7 23. 24.8 4.75.56.4 0.6 0.80.80.6 Required 1-a. Compute the throughput time for each month 1-b. Compute the delivery cycle time for each month. 1-c. Compute the manufacturing cycle efficiency (MCE) for each month. 2. Evaluate the company's performance over the last four months 3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE 3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in 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

Explanation / Answer

Answer 1-a. Throughput Time = Process Time + Inspection Time + Move Time + Queue Time Month 1 2 3 4 Move Time                0.9             0.5             0.6             0.6 Process Time                3.6             3.4             3.2             3.0 Queue Time                4.7             5.5             6.4             7.4 Inspection Time                0.6             0.8             0.8             0.6 Throughput Time                9.8           10.2           11.0           11.6 Answer 1-c. MCE = Value Added Time (process Time) / Throughput Time Month 1 2 3 4 Process Time                3.6             3.4             3.2             3.0 Throughput Time                9.8           10.2           11.0           11.6 MCE 36.73% 33.33% 29.09% 25.86% Answer 1-b. Delivery Cycle Time = Wait Time + Throughput Time Month 1 2 3 4 Wait Time              18.0           19.7           23.0           24.8 Throughput Time                9.8           10.2           11.0           11.6 Delivery Cycle Time              27.8           29.9           34.0           36.4 Answer 2. The Throughput Time Measures Displays Upward trends The Delivery Cycle Time - days measures diplays Upward trends Manufacturing cycle efficiency - days measure displays Downward trends Answer 3-a Month 5 Move Time                0.6 Process Time                3.0 Queue Time                   -   Inspection Time                0.6 Throughput Time                4.2 MCE (3 / 4.2) 71.43% Answer 3-b Month 6 Move Time                0.6 Process Time                3.0 Queue Time                   -   Inspection Time                   -   Throughput Time                3.6 MCE (3 / 3.6) 83.33%

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