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DataSpan, Inc, automated its plant at the startofthe currentyear and instaled a

ID: 468945 • Letter: D

Question

DataSpan, Inc, automated its plant at the startofthe currentyear and instaled a fexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performanoe 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 ofoperations Throughputtime (days Delivery cycle time (days Manufacturing cycle efficiency (MCE Peroentage ofon-time deliveries Total sales (units 79% 80% 85% 92% 10,570 10.450 10.440 10.510 Management has asked for your help in computing throughputtime,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 Wait time per order before start of Queue time per unit Inspection time per unit 0.4 06 0.7 05 07 0.7 06 03 100 8.0 50 4.0 3 4.0 30 21 06 05 070.7 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 days days days days 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. (Round your answers to 1 decimal place ie. 0.123 should be enteredas 12.3)] Cycle Efficiency Month 1 Month 2 Month 3 Month 4 1-c. Compute the delivery cycle time for each month. (Round your answers to 1 decimal place) Month 1 Month 2 Month 3 Month 4 days days days 3-a. Refer to the move time, prooess time, and so forth, given for month 4.Assume that in month 5 the move ime, prooess time, and so forth, are the same as in month 4, expept that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughputtime and MCE. Round your Throughput Time to 1 decimal place. Round your MCE percentage answer to 1 decimal place (ie 0.123 should be entered as 123)) Throughputtime Manufacturing cycle efficiency (MCE) days

Explanation / Answer

Throughput Time = Process time + Inspection Time + Move Time + Queue Time

MCE = Value Added Time / Throughput Time

* Value Added Time = Process Time

Delivery Cycle time = Wait Time + Throughput Time

3(a)

After eliminating Queue time during production

New Throughput Time = 0.5 + 0.3 + 0.7 = 1.5 days

MCE = Value Added Time / New Throughput time = 0.3 / 1.5 = 0.2 = 20 %

3(b)

After eliminating Queue time during production and inspection

New Throughput Time = 0.3 + 0.5 = 0.8 days

MCE = Value Added Time / New Throughput time = 0.3 / 0.8 = 0.375 = 37.5 %

3(b)

Month 1 2 3 4 Throughput Time 5 5.8 5 3.6 Delivery Cycle Time 15 13.8 10 7.6 MCE 14.0% 12.1% 14.0% 19.4% Percentage of on Time Delivery 79% 80% 85% 92% Total Sales 10,570 10,450 10,440 10,510