DataSpan, Inc., automated its plant at the start of the current year and install
ID: 2567382 • 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.
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:
Required:
1-a. Compute the throughput time for each month.
1-b. Compute the delivery cycle time for each month.
1-c. Compute the manufacturing cycle efficiency (MCE) for each month.
2. Evaluate the company’s performance over the last four months.
3-a. 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 in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.
3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in 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.
Month 1 2 3 4 Throughput time (days) ? ? ? ? Delivery cycle time (days) ? ? ? ? Manufacturing cycle efficiency (MCE) ? ? ? ? Percentage of on-time deliveries 82 % 77 % 74 % 71 % Total sales (units) 2100 2010 1907 1835Explanation / Answer
Answer 1-a. Throughput Time = Process Time + Inspection Time + Move Time + Queue Time Month 1 2 3 4 Move Time 0.6 0.3 0.4 0.4 Process Time 2.3 2.2 2.1 2.0 Queue Time 4.7 5.5 6.4 7.4 Inspection Time 0.8 1.1 1.1 0.8 Throughput Time 8.4 9.1 10.0 10.6 Answer 1-c. MCE = Value Added Time (process Time) / Throughput Time Month 1 2 3 4 Process Time 2.3 2.2 2.1 2.0 Throughput Time 8.4 9.1 10.0 10.6 MCE 27.38% 24.18% 21.00% 18.87% Answer 1-b. Delivery Cycle Time = Wait Time + Throughput Time Month 1 2 3 4 Wait Time 20.0 21.9 26.0 28.0 Throughput Time 8.4 9.1 10.0 10.6 Delivery Cycle Time 28.4 31.0 36.0 38.6 Answer 2. The Throughput Time Measures Displays Upward trends The Delivery Cycle Time - days measures diplays Upward trends Manufacturing cysle efficiency - days measure displays Downward trends Answer 3-a Month 5 Move Time 0.4 Process Time 2.0 Queue Time - Inspection Time 0.8 Throughput Time 3.2 MCE (2.0 / 3.2) 62.50% Answer 3-b Month 6 Move Time 0.4 Process Time 2.0 Queue Time - Inspection Time - Throughput Time 2.4 MCE (2.0 / 2.4) 83.33%
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