DataSpan, Inc., automated its plant at the start of the current year and install
ID: 2572085 • 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 2 Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 79% 80% 85% 92% 10,560 10,430 10,510 10,600 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 da 2 4 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 0.6 0.4 0.5 0.7 0.3 0.7 0.6 9.5 8.0 5.0 5.0 3.8 3.8 2.5 1.5 0.4 0.8 0.4 0.8 Required 1-a. Compute the throughput time for each month. (Round your answers to 1 decimal place.) Month 1 Month 2 Month 3 Month 4 Throughput Time days days days daysExplanation / Answer
1-a: Throughput time for each month
Throughput time = Move time+ process time + queue time+ inspection time
1-b: Manufacturing cycle efficiency for each month
MCE = process time / throughput time
1-c: Delivery cycle time for each month:
Delivery time = wait time + throughput time
3-a and 3-b: Throughput time and MCE for month 5 and month 6:
As it is seen, by eliminating non value added activities the manufacturing cycle efficiency increases.
Working notes:
Month 1
Month 2
Month 3
Month 4
Move time
0.6
0.6
0.4
0.5
Process time
0.7
0.3
0.7
0.6
Queue time
3.8
3.8
2.5
1.5
Inspection time
0.4
0.8
0.4
0.8
Throughput time
5.5
5.5
4
3.4
Manufacturing cycle efficiency =process time /throughput time
12.7%
5.5%
17.5%
17.6%
Delivery cycle time:
Wait time
9.5
8
5
5
Throughput time
5.5
5.5
4
3.4
Total delivery cycle time
15
13.5
9
8.4
MCE:
Month 1: 0.7 / 5.5 = 0.127 = 12.7%
Month 2: 0.3/5.5 = 0.0545 = 5.5%
Month 3: 0.7/4 = 0.175 = 17.5%
Month 4: 0.6/3.4=0.17647 = 17.6%
Since MCE is to be expressed in percentage form we multiply answer by 100. And take up to one decimal place as given in the question.
Months Throughput time 1 5.5 days 2 5.5 days 3 4 days 4 3.4 daysRelated Questions
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