Inverness Corporation has recently begun a continuous improvement campaign. As a
ID: 2355777 • Letter: I
Question
Inverness Corporation has recently begun a continuous improvement campaign. As a consequence, there have been many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory.
Management has been gathering the following data over the past four months:
Month
The president has attended conferences at which the importance of throughput time, manufacturing cycle efficiency, and delivery cycle time were stressed, but no one at the company is sure how they are computed. The data to compute these measures have been gathered and appear below:
Month
For each month, compute the following operating performance measures: (Round your intermediate calculations and final answers to 1 decimal place.)
Assume that in month 5 the move time, process time, and so forth, are the same as for month 4, except that through the implementation of Lean Production, the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE. (Round your intermediate calculations and final answers to 1 decimal place.)
Assume that in month 6 the move time, process time, and so forth, are the same as for 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 intermediate calculations and final answers to 1 decimal place.)
Inverness Corporation has recently begun a continuous improvement campaign. As a consequence, there have been many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory.
Management has been gathering the following data over the past four months:
Explanation / Answer
Please post requirement 3 again, below is the answer to the Requirement 1.
a. Throughput time (manufacturing cycle time) Months 1 2 3 4 Process time 0.5 0.5 0.5 0.5 Inspection time 0.1 0.1 0.5 0.6 Move time 1.4 1.3 1.3 1.4 Queue time 5.6 5.7 5.6 5.7 Throughput time 7.6 7.6 7.9 8.2 b. Manufacturing cycle efficiency (MCE) = (Value-added time)/((Value-added time + Non-value added time) MCE = (Process time) / (Throughput time) Months 1 2 3 4 Process time 0.5 0.5 0.5 0.5 Throughput time 7.6 7.6 7.9 8.2 MCE = 6.58% 6.58% 6.33% 6.10% c. Delivery cycle time = Wait time + Throughput time Months 1 2 3 4 Wait time 15.6 14.5 11.8 9 Throughput time 7.6 7.6 7.9 8.2 Delivery cycle time = 23.20 22.10 19.70 17.20Related Questions
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