Data Screen Corporation is a highly automated manufacturing firm. The vice presi

Question

Data Screen Corporation is a highly automated manufacturing firm. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor is insignificant in terms of the total cost of production and tends to be fixed, material quality is considered more important than minimizing material cost, and customer satisfaction is the number one priority. As a result, production and delivery performance measures have been chosen to evaluate performance. The following information is considered typical of the time involved to complete and ship orders.

Required:

Calculate the manufacturing cycle efficiency. (Round your percentage answer to 1 decimal place. (i.e., 0.123 should be entered as 12.3))

Calculate the delivery cycle time. (Round your answer to nearest whole number.)

Waiting time: From order being placed to start of production 14 days From start of production to completion 13 days Inspection time 2.3 days Processing time 4.6 days Move time 3.3 days

Explanation / Answer

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Manufacturing Cycle Efficiency= Value added time/throughput time Manufacturing Cycle Efficiency= 4.6/23.2 Manufacturing Cycle Efficiency= 0.20 Value added time=Process Time 4.6 days Throughtput Time= Procee+Inspection+Move+Start to production 4.6+2.3+3.3+13 23.2 Days Delivery Cycle Time= Wait Time+Throughput time 14+23.2 37.2

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