DataSpan, Inc., automated its plant at the start of the current year and install

Question

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Month

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Average per Month (in days)

Required:

1-a. Compute the throughput time for each month. (Round your answers to 1 decimal place.)

1-b. Compute the manufacturing cycle efficiency (MCE) for each month. (Round your answers to 1 decimal place.)

1-c. Compute the delivery cycle time for each month. (Round your answers to 1 decimal place.)

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. (Round your answers to 1 decimal place.)

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. (Round your answers to 1 decimal place.)

Month

1 2 3 4 Throughput time (days) ? ? ? ? Delivery cycle time (days) ? ? ? ? Manufacturing cycle efficiency (MCE) ? ? ? ? Percentage of on-time deliveries 78% 79% 84% 91% Total sales (units) 10,420 10,400 10,410 10,580

Explanation / Answer

Working:

3-b

1-a Month 1 2 3 4 Throughput time 5.5 5.4 3.8 3.5 1-b Month 1 2 3 4 Manufacturing cycle efficiency (MCE) 0.1 0.1 0.2 0.1 1-c Month 1 2 3 4 Delivery cycle time ( days) 15.2 13.4 8.8 7.5

Working:

Month 1 2 3 4 Throughput time (days) 5.5 5.4 3.8 3.5 Delivery cycle time ( days) 15.2 13.4 8.8 7.5 Manufacturing cycle efficiency (MCE) 0.1 0.1 0.2 0.1 Percentage of on time deliveries 78% 79% 84% 91% Total sales (units) 10420 10400 10410 10580 Throughput tme = Move time + Proess time + Queue time + Inspection time Delivery cycle time = Throughput time + Wait time before start of production Manufacturing cycle eficiency = Process time / throughput time 3-a Month 5 Throughput time (days) 1.5 Delivery cycle time ( days) 5.5 Manufacturing cycle efficiency (MCE) 0.3

3-b

3-b Month 6 Throughput time (days) 1.1 Delivery cycle time ( days) 5.1 Manufacturing cycle efficiency (MCE) 0.5 Percentage of on time deliveries 91% Total sales (units) 10580

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