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PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT. DO NOT LEAVE PARTIAL ANSWER!!!!!!

ID: 360657 • Letter: P

Question

PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

PLEASE COMPLETE ALL QUESTIONS, NOT SOME OF IT.

DO NOT LEAVE PARTIAL ANSWER!!!!!!! PLEASE PLEASE!!

Problem 11-14 Measures of Internal Business Process Performance [LO11-3] 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 Throughput time (days) Delivery cycle time (days) facturing cycle efficiendc Percentage of on-time deliveries Total sales (units) 76% 3050 2919 2770 2666 72 % 69% 66% 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 Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit 2.0 19.0 20.8 23.0 24.8 2.2 5.2 0.5 6.0 0.5 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 month:s 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

1a - Throughput time = Process time+queue time+ move time + Inspection time

Month 1 = 8.1

Month 2= 8.6

Month 3 = 9.5

Month 4 = 10.2

1b Delivery cycle time = Wait time + throughput time

Month 1 = 27.1

Month 2 = 29.4

Month 3 = 32.5

Month 4 = 35

1c Manufacturing cycle efficiency = value added time / throughput time

= Process time / throughput time

Month 1 = 2.3 / 8.1 = 0.28 = 28%

Month 2 = 2.2 / 8.6 =0.255 =25.5%

Month 3 = 2.1 / 9.5 =0.22 = 22%

Month 4 = 2/10.2 = 0.196 = 19.6%

Ans 2 - As the values of throughput time, DCT and MCE are increasing over months, the process is becoming less efficient. Hence all three trends are unfavourable.

Ans 3a

New throughput time for month 5= Move time + proccess time + inspection time

= 0.9+2+0.4 = 3.3

New MCE = 2 / 3.3 = 0.606 = 60.6%

3b

New throughput time for month 6 = Move time + Process time

= 0.9+2 = 2.9

New MCE = 2/2.9 = 0.689 = 68.9%

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