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DataSpan, Inc., automated its plant at the start of the current year and install

ID: 2749092 • 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 answers to 1 decimal place.)

          

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

1-a) Throughput time = Process time + Inspection time + move time + queue time                                Month 1 2 3 4 Throughput time ( days) 0.3 + 0.5 + 0.8 + 4.1 = 5.7 days 0.6+0.4+0.6+3.3=4.9 days 0.6+0.5+0.6+3 = 4.8 days 0.6+0.5+0.4+1.4 = 2.9 days 1-b) Manufacturing cycle efficiency = Value added time / Throughput time   Value added time = Process time Manufacturing cycle efficiency = Process time / Throughput time                                  Month 1 2 3 4 Manufacturing cycle efficiency = 0.3 / 5.7 = 0.1 0.6/ 4.9 = 0.1 0.6/ 4.8 = 0.1 0.6/ 2.9 = 0.2 1-c) Delivery cycle time = Wait time + throughput time                                Month 1 2 3 4 Delivery cycle time = 9 + 5.7 = 14.7 8 + 4.9 = 12.9 5 + 4.8 = 9.8 4 + 2.9 = 6.9 3 - a Month 5 Move time 0.4 Process time 0.6 Wait time 4 Queue time 0 Inspection time 0.5 Throughput time = Process time + Inspection time + move time + queue time                                     = 0.6 + 0.5 + 0.4 + 0                                      = 1.5 days Manufacturing cycle efficiency = Process time / Throughput time                                                                  = 0.6 / 1.5                                                                = 0.4 3-b) Month 6 Move time 0.4 Process time 0.6 Wait time 4 Queue time 0 Inspection time 0 Throughput time = Process time + Inspection time + move time + queue time = 0.6 + 0 + 0.4 + 0 = 1.0 days Manufacturing cycle efficiency = Process time / Throughput time                                                                  = 0.6 / 1                                                                = 0.6