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 1 2 3 4 Throughput time (days) ? ? ? ? Delivery cycle time (days) ? ? ? ? Manufacturing cycle efficiency (MCE) ? ? ? ? Percentage of on-time deliveries 73% 74% 79% 86% Total sales (units) 10,550 10,440 10,560 10,560 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) 1 2 3 4 Move time per unit 0.6 0.5 0.4 0.8 Process time per unit 0.7 0.7 0.7 0.4 Wait time per order before start of production 9.6 8.0 5.0 4.0 Queue time per unit 3.4 3.1 2.4 1.7 Inspection time per unit 0.6 0.6 0.4 0.6 Required:1-a. Compute the throughput time for each month. (Round your answers to 1 decimal place.)

Answer 1

Throughput for each month is as follows.

Average per Month (in days) 1 2 3 4

Throughput time 5.3 4.9 3.9 3.5

Step-by-step explanation:

Average per Month (in days) 1 2 3 4

Throughput time 5.3 4.9 3.9 3.5

Delivery cycle time (days) 14.9 12.9 8.9 7.5

(MCE) 0.7/5.3 0.7/4.9 0.7/3.9 0.4/3.5

(MCE) % 13.21% 14.29 17.95 11.43

Working

DataSpan, Inc.

Total sales (units) 10,550 10,440 10,560 10,560

Average per Month (in days) 1 2 3 4

Move time per unit 0.6 0.5 0.4 0.8

Process time per unit 0.7 0.7 0.7 0.4

Wait time per order 9.6 8.0 5.0 4.0

Queue time per unit 3.4 3.1 2.4 1.7

Inspection time per unit 0.6 0.6 0.4 0.6

1.a- Throughput (manufacturing cycle) time = Inspection Time + Process Time + Move Time + Queue time

All of the above will be added except wait time.

Throughput time 5.3 4.9 3.9 3.5

Delivery Cycle Time= NonValue Added time + Value Added Time (Process Time)

Non Value Added Time= Wait time + Inspection Time + Move Time + Queue Time ( all of the above would be added)

Delivery cycle time (days) 14.9 12.9 8.9 7.5

Manufacturing cycle efficiency (MCE)=Process Time/ Processing Time + Inspection Time + Move Time + Queue time

(MCE) 0.7/5.3 0.7/4.9 0.7/3.9 0.4/3.5

(MCE) 13.21% 14.29 17.95 11.43