DataSpan, Inc., automated its plant at the start of the current year and install
ID: 2512127 • Letter: D
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 4 Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 83% 2700 78% 2585 75% 2453 72% 2360 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 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 2.0 21.e 4.0 0.4 0.3 1.9 23.0 4.6 0.5 0.4 1.8 26.0 5.3 0.5 4 0.4 1.7 28.1 6.1 0.4Explanation / Answer
Data Span Inc. FORMULA Throughput time=Process Time+Inspection time+Move Time+Queue Time 1a Month 1 Month 2 Month 3 Month 4 Process Time 2.0 1.9 1.8 1.7 Days Inspection Time 0.4 0.5 0.5 0.4 Days Move Time 0.6 0.3 0.4 0.4 Days Queue Time 4.0 4.6 5.3 6.1 Days ThroughPut time= 7.0 7.3 8.0 8.6 Days 1b Manufacturing Cycle Efficiency=Process Time/Throughput Time Month 1 Month 2 Month 3 Month 4 Process Time=(a) 2.0 1.9 1.8 1.7 Days Throughput Time=(b) 7.0 7.3 8.0 8.6 Days Manufacturing Cycle Efficiency=(a)/(b) 28.57% 26.03% 22.50% 19.77% 1c Delivery Cycle Time=Wait Time+Throughput Time Month 1 Month 2 Month 3 Month 4 Wait Time=(a) 21.0 23.0 26.0 28.1 Days Throughput Time=(b) 7.0 7.3 8.0 8.6 Days Delivery Cycle Time=(a)+(b) 28.0 30.3 34.0 36.7 Days 2 Throughput time increases each year because its means that time spend to convert raw material into finished goods is increases. Manufacturing Cycle efficiency decreases it means that time spend on non value added activities is reduces. Throughput time=Process Time+Inspection time+Move Time+Queue Time 3a Month 4 Process Time 1.7 Inspection Time 0.4 Move Time 0.4 ThroughPut time= 2.5 Manufacturing Cycle Efficiency=Process Time/Throughput Time Month 4 Process Time 1.7 ThroughPut time= 2.5 Manufacturing Cycle Efficiency 68.00% Throughput time=Process Time+Inspection time+Move Time+Queue Time 3b Month 4 Process Time 1.7 Move Time 0.4 ThroughPut time= 2.1 Throughput time=Process Time+Inspection time+Move Time+Queue Time Month 4 Process Time 1.7 ThroughPut time= 2.1 Manufacturing Cycle Efficiency 80.95%
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