Maclntyre Fabrications, Ltd., of Aberdeen, Scotland, has recently begun a contin

Question

Maclntyre Fabrications, Ltd., of Aberdeen, Scotland, has recently begun a continuous improvement campaign in conjunction with a move toward Lean Production. Management has developed new performance measures as part of this campaign. The following operating data have been gathered over the last four months: Management would like to know the company's throughput time, manufacturing cycle efficiency, and delivery cycle time. The data to compute these measures have been gathered and appear below: Required: Complete the below table to calculate throughput time, manufacturing cycle efficiency (MCE), and delivery cycle time, for each month. 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 for month 4. except that through the implementation of Lean Production, the company is able to completely eliminate the queue time during production in month 6 the move time, process time, and so forth, are the same as for month 5, except that the company is able to completely eliminate the inspection time. Compute the new throughput time and MCE.

Explanation / Answer

Throughout time, Manufacturing cycle efficiency and delivery time is calculated as shown below:

Month 1 2 3 4 Throughput time in days:    Process time 0.7 0.5 0.5 0.4    Inspection time 0.5 0.3 0.6 0.6    Move time 0.8 0.5 0.4 0.4    Queue time 3.0 3.0 2.0 1.0 Total throughput time 5.0 4.3 3.5 2.4 Manufacturing cycle efficiency (MCE) = Process time/throughput time 14% 12% 14% 17% Delivery cycle time in days:    Wait time 10.0 8.0 5.0 4.0    Total throughput time 5.0 4.3 3.5 2.4    Total delivery cycle time 15.0 12.3 8.5 6.4 Month 5 6 Throughput time in days:    Process time 0.4 0.4    Inspection time 0.6    Move time 0.4 0.4    Queue time Total throughput time 1.4 0.8 Manufacturing cycle efficiency (MCE) 29% 50%

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