17 Problem 11-14 Measures of Internal Business Process Performance [L011-3] Data
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Question
17 Problem 11-14 Measures of Internal Business Process Performance [L011-3] 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. 10 Throughput tine (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 71% 3347 3838 36673479 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: Month (in days Move time per unit Process time per unit Hait time per Queue time per unit Inspection time per unit e.5 2.2 e.6 2.1 e.6 2.0 24.826.329.31.4 6.5 8.9 0.8 2.3 order before start of production 4.4 8.9 1.1 1.1 Required: 1-8. 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. 3-8. 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. e this question by entering your a nswers in the tabs below. Required 1Required 2 Required 3 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. (Round your answers to 1 decimal place.) Show less Throughput Time Delivery Cycle Time Month 1 Month 2 Month 3 Month 4 days days days days daysExplanation / Answer
Answer
1.a) Throughput Time: It is a time required for converting raw material into finished product.
Calculation of Throughput Time
1.b) Delivery Cycle Time: It is the time gap between When the order is received to the order is shipped.
Calculation of Delivery Cycle Time
1.c) Manufacturing Cycle Efficiency: It is the value added time(i.e. only process time) taken as a percentage of throughput time. It gives the measure to reduce non value added items in order to improve efficiency and provide product more quickly in the hands of customer.
Calculation of Manufacturing Cycle Efficiency: Here Value added time will only be the process time.
Month Calculation= Process Time+ Inspection Time+Move Time+Que Time Answer Month1 =2.3 + 0.9 + 0.8 + 4.4 8.4 Month2 =2.2 + 1.1 + 0.5 + 5.0 8.8 Month3 =2.1 + 1.1 + 0.6 + 5.7 9.5 Month4 =2.0 + 0.9 + 0.6 + 6.5 10Related Questions
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