DataSpan, Inc., automated its plant at the start of the current year and install
ID: 343629 • Letter: D
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 2 4 Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units 85% 80% 77% 74% 2180 2087 1980 1905 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 vera Month (in da 0.8 3.1 24.0 4.7 0.5 0.5 2.9 26.3 5.3 0.6 0.6 2.6 31.4 6.8 0.5 Move time per unit 0.6 2.8 29.0 6.0 0.6 Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit 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
The Calculations are done as follows:
Average per Month (in days)
Month
1
2
3
4
5*
6**
M
Move time per unit
0.8
0.5
0.6
0.6
0.6
0.6
P
Process time per unit
3.1
2.9
2.8
2.6
2.6
2.6
W
Wait time
24
26.3
29
31.4
31.4
31.4
Q
Queue time per unit
4.7
5.3
6
6.8
0
0
I
Inspection time per unit
0.5
0.6
0.6
0.5
0.50
0.00
T = I+P+Q+M
Throughput time
9.1
9.3
10
10.5
3.7
3.2
MCE = P/T
MCE
34.07%
31.18%
28.00%
24.76%
70.27%
81.25%
Delivery cycle time
W
Wait time
24
26.3
29
31.4
31.4
31.4
T
Throughput time
9.1
9.3
10
10.5
3.7
3.2
D = W+T
Total Delivery cycle time
33.1
35.6
39
41.9
35.1
34.6
Throughput Time = Process Time + Inspection time + Move time + Queue time
For month 1, Throughput time = 3.1 + 0.5 + 0.8 + 4.7 = 9.1
Manufacturing cycle efficiency = Process time/Throughput time) x 100
MCE for month 1 = 3.1/9.1 x 100 = 34.07%
Total Delivery cycle time = Wait time + Throughput time
Total Delivery cycle time = 24 + 9.1 = 33.1
*For 5th month: all the times are same as month 4 except, the queue time = 0
**For 6th month: all the times are same as month 5 except, the queue time and inspection time = 0
Answer:
Q: 1a
Q: 1b
Q: 1c
Month
Throughput time (days)
MCE
Total Delivery cycle time (days)
1
9.1
34.07%
33.1
2
9.3
31.18%
35.6
3
10
28.00%
39
4
10.5
24.76%
41.9
(Q:3a) 5
3.7
70.27%
35.1
(Q: 3b) 6
3.2
81.25%
34.6
Average per Month (in days)
Month
1
2
3
4
5*
6**
M
Move time per unit
0.8
0.5
0.6
0.6
0.6
0.6
P
Process time per unit
3.1
2.9
2.8
2.6
2.6
2.6
W
Wait time
24
26.3
29
31.4
31.4
31.4
Q
Queue time per unit
4.7
5.3
6
6.8
0
0
I
Inspection time per unit
0.5
0.6
0.6
0.5
0.50
0.00
T = I+P+Q+M
Throughput time
9.1
9.3
10
10.5
3.7
3.2
MCE = P/T
MCE
34.07%
31.18%
28.00%
24.76%
70.27%
81.25%
Delivery cycle time
W
Wait time
24
26.3
29
31.4
31.4
31.4
T
Throughput time
9.1
9.3
10
10.5
3.7
3.2
D = W+T
Total Delivery cycle time
33.1
35.6
39
41.9
35.1
34.6
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