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 1 2 3 4 Throughput time (days) ? ? ? ? Delivery cycle time (days) ? ? ? ? Manufacturing cycle efficiency (MCE) ? ? ? ? Percentage of on-time deliveries 91 % 86 % 82 % 78 % Total sales (units) 3460 3312 3143 3025 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) 1 2 3 4 Move time per unit 0.7 0.5 0.6 0.6 Process time per unit 2.8 2.7 2.6 2.5 Wait time per order before start of production 23.0 25.2 28.0 30.2 Queue time per unit 4.6 5.3 6.1 7.0 Inspection time per unit 0.5 0.6 0.6 0.5 Required: 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. 2. Evaluate the company’s performance over the last four months. 3-a. 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.

Complete this question by entering your answers in the tabs below.

Required 1

Required 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 Manufacturing Cycle Efficiency (MCE) Month 1 days days % Month 2 days days % Month 3 days days % Month 4 days days %

3-a. (Month 5) 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. (Month 6) 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.)

Show less

	Month 5 Month 6 Throughput time days days Manufacturing cycle efficiency (MCE) % %

Answer 1

1a: Throughput time for each month

Throughput time = Move time+ process time + queue time+ inspection time

Months	Throughput time
1	8.6 days
2	9.1 days
3	9.9 days
4	10.6 days

1-b: Delivery cycle time for each month

Delivery time = wait time + throughput time

Months	Delivery cycle time
1	31.6 days
2	34.3 days
3	37.9 days
4	40.8 days

1c: Manufacturing cycle efficiency for each month

MCE  = process time / throughput time

Months	Manufacturing Cycle Efficiency(MCE)
1	32.6 %
2	29.7%
3	26.3%
4	23.6%

The manufacturing cycle efficiency of the company has been decreasing over the period of 4 months due to the presence of non value added activities.

3-a and 3-b: Throughput time and MCE for month 5 and month 6:

	Month 5	Month 6
Throughput time days:
process time	2.5	2.5
inspection time	0.5	0
move time	0.6	0.6
queue time	0	0
Throughput time	3.6 days	3.1 days
MCE= process time/throughput time	69.4%	80.6%

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	0.7	0.5	0.6	0.6
Process time	2.8	2.7	2.6	2.5
Queue time	4.6	5.3	6.1	7.0
Inspection time	0.5	0.6	0.6	0.5
Throughput time	8.6	9.1	9.9	10.6
Manufacturing cycle efficiency =process time /throughput time	32.6%	29.7%	26.3%	23.6%
Delivery cycle time:
Wait time	23	25.2	28	30.2
Throughput time	8.6	9.1	9.9	10.6
Total delivery cycle time	31.6	34.3	37.9	40.8

MCE:

Month 1: 2.8 / 8.6 = 0.326 = 32.6%

Month 2: 2.7 / 9.1 = 0.297 = 29.7%

Month 3: 2.6 / 9.9 = 0.263 = 26.3%

Month 4: 2.5 / 10.6 =0.236 = 23.6%

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.