DataSpan, Inc., automated its plant at the start of the current year and install

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) 77% 78% 90% 10,520 10,520 10,430 10,510 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 2 4 Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit 0.6 0.3 0.7 0.6 0.6 0.5 0.5 0.7 9.98.0 5.0 4.0 3.6 3.1 2.8 1.8 0.5 0.80.5 0.5

Explanation / Answer

Solution.

We know that:

1. Throughput time = Process time + Inspection time + move time + Queue time

2. Delivery Cycle Time = Wait time + Throughput time

3. MCE (%) = (Value-added time / Throughput time)*100

where

Value-added time = Process time

Part 1-a.

Part 1-b.

Part 1-c.

Part 3-a.

Revised Throughput Time = 3.6 days - 1.8 days = 1.8 days

Revised MCE = (0.7 / 1.8)*100 = 38.9%

Part 3-b.

Revised Throughput Time = 3.6 days - 1.8 days - 0.5 = 1.3 days

Revised MCE = (0.7 / 1.3)*100 = 53.8%

Month Throughput Time 1 0.6+0.6+3.6+0.5 = 5.3 days 2 0.3+0.5+3.1+0.8 = 4.7 days 3 0.7+0.5+2.8+0.5 = 4.5 days 4 0.6+0.7+1.8+0.5 = 3.6 days

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