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Data Screen Corporation is a highly automated manufacturing firm. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor is insignificant in terms of the total cost of production and tends to be fixed, material quality is considered more important than minimizing material cost. and customer satisfaction is the number one priority. As a result. production and delivery performance measures have been chosen to evaluate performance. The following information is considered typical of the time involved to complete and ship orders.

Waiting time:
From order being placed to start of production.
8.0 days
From start of production to completion
7.0 days
Inspection time
1.5 days
Processing time
3.0 days
Move time
2.5 days
Required:
1. Calculate the manufacturing cycle efficiency.
2. Calculate the delivery cycle time.

2 Answers

2 votes

Final answer:

The manufacturing cycle efficiency (MCE) for Data Screen Corporation is calculated by dividing the processing time by the throughput time, yielding a result. The delivery cycle time is the sum of all waiting, processing, inspection, and move times from order placement to completion.

Step-by-step explanation:

The student has been tasked with calculating performance measures for Data Screen Corporation, focusing on manufacturing cycle efficiency (MCE) and delivery cycle time.

The manufacturing cycle efficiency (MCE) is a measure of the production process efficiency and is calculated by dividing the value-added time by the throughput time (total cycle time). Value-added time is the time during which actual production or processing takes place, which in this case is the processing time of 3.0 days. The throughput time includes the processing time plus inspection time (1.5 days), move time (2.5 days), and any waiting time related to production. In this scenario, we exclude the initial waiting time of 8.0 days before production starts, as it is not part of the production cycle. Therefore, the throughput time would be the sum of processing time, inspection time, and move time, resulting in 3.0 + 1.5 + 2.5 = 7.0 days. The MCE is calculated as follows: (3.0 days / 7.0 days) * 100.

The delivery cycle time is the total time from when the order is placed to when it is delivered. To find this, we sum the waiting time before production, the throughput time, and the waiting time from production to completion. This gives us a cycle time of 8.0 days (from order to production) + 7.0 days (throughput) + 7.0 days (from production to completion), resulting in a total of 22.0 days.

User Dudeperryfect
by
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6 votes

Answer:

Answer:

1. MCE = 21.42%

2. Delivery Cycle Time 22 days

Step-by-step explanation:

The Manufacturing Cycle Time is given by the formula:

Manufacturing cycle time = Inspection Time + Process Time + Move Time + Queue time

Here we have

Inspection time =1.5 days

Processing time =3.0 days

Move time =2.5 days

Queue time= 7.0 days

Wait time= 8.0 days

Manufacturing Cycle Time = 1.5+3.0+2.5+ 7.0= 14.0 days

MCE= Manufacturing Cycle Efficiency Time= Process Time/ Processing Time + Inspection Time + Move Time + Queue time

MCE = 3/ 14=0.2142= 21.42%

It means that MCE consists of 21.42 %actual processing and 79 % consists of non value added activities.

2. Delivery Cycle Time= Manufacturing Cycle Time + Wait time

Delivery Cycle Time= 14.0 days + 8.0 days= 22.0 days

The difference between wait time and queue time is that wait time is the time when the customer places an order until it is delivered.And queue time from the start of the production of the order.

User Strauss
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