DataSpan, Inc., automated its plant at the start of the current year and install
ID: 2591467 • 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
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)
Wait time per order before start
of production
Compute the manufacturing cycle efficiency (MCE) for each month. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be considered as 12.3%.))
Compute the delivery cycle time for each month. (Round your answers to 1 decimal place.)
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. (Round your answers to 1 decimal place.)
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. (Round your answers to 1 decimal place.)
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.
Explanation / Answer
1a.Throughput time:
Throughput time=Move time+ Process time + Queue time +Inspection time
Throughput time in month 1=0.3+0.4+3.4+0.5=4.6 days
Throughput time in month 2=0.6+0.3+3.5+0.4=4.8 days
Throughput time in month 3=0.8+0.7+3.1+0.5=5.1 days
Throughput time in month 4=0.5+0.4+2.0+0.8=3.7 days
.1b. Delivery cycle time :
Delivery cycle time is the time elapsed between acceptance of an order from customer and delivery of the product to the customer
Delivery cycle time = Throughput time+ Wait time of order before start of production
Delivery cycle time month1=4.6+9.9=14.5 days
Delivery cycle time month2=4.8+8.0=12.8 days
Delivery cycle time month3=5.1+5.0=10.1 days
Delivery cycle time month4=3.7+4.0=7.7 days
.1c.Manufacturing cycle efficiency:
Manufacturing cycle efficiency=Value added time/Manufacturing throughput time
Value added time=Processing time
Manufacturing cycle efficiency in month 1=0.4/4.6=0.0870=8.70%
Manufacturing cycle efficiency in month 2=0.3/4.8=0.0625=6.25%
Manufacturing cycle efficiency in month 3=0.7/5.1=0.1373=13.73%
Manufacturing cycle efficiency in month 4=0.4/3.7=0.1081=10.81%
Processing time(Value added time)
0.4
0.3
0.7
0.4
MONTHS
1
2
3
4
Throighput time (days)
4.6
4.8
5.1
3.7
Delivery cycle time(days)
14.5
12.8
10.1
7.7
Manufacturing cycle efficiency(MCE)
8.70%
06.25%
13.73%
10.81%
Percentage of on time deliveries
77%
78%
83%
90%
Total sales (Units)
10,570
10,570
10,500
10,540
.3a.New throughput time in month 5=Move time+ Process time+ Inspection time+
Queue time=0.5+0.4+0.8+0=1.7 days
Manufacturing cycle efficiency(MCE)=Process time/Throughput time=0.4/1.7= 0.2353=23.53%
.3b. New throughput time in month 6=Move time+ Process time+ Inspection time+
Queue time=0.5+0.4+0+0=0.9days
Manufacturing cycle efficiency (MCE)=Process time/Throughput time=0.4/0.9= 0.4444=44.44%
Processing time(Value added time)
0.4
0.3
0.7
0.4
MONTHS
1
2
3
4
Throighput time (days)
4.6
4.8
5.1
3.7
Delivery cycle time(days)
14.5
12.8
10.1
7.7
Manufacturing cycle efficiency(MCE)
8.70%
06.25%
13.73%
10.81%
Percentage of on time deliveries
77%
78%
83%
90%
Total sales (Units)
10,570
10,570
10,500
10,540
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.