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	90	%	84	%	81	%	78	%
Total sales (units)	2410		2307		2189		2106

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	0.9		0.5		0.6		0.6
Process time per unit	3.6		3.4		3.2		3.0
Wait time per order before start of production	18.0		19.7		23.0		24.8
Queue time per unit	4.7		5.5		6.4		7.4
Inspection time per unit	0.6		0.8		0.8		0.6

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.

Round to 1 decimal
	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 %

(Indicate the effect of each trend by selecting "Favorable" or  "Unfavorable" or "None" for no effect (i.e., zero variance).

	The Throughput Time measure displays trends The Delivery cycle time—days measure displays trends Manufacturing cycle efficiency—days measure displays trends

(Round your intermediate calculations and final answers to 1 decimal place.)

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

Answer 1

Ans:

1.A). Throughput Time=

	Average Per Month{In days}
Particulars	1	2	3	4
Move time per unit	0.9	0.5	0.6	0.6
Process time per unit	3.6	3.4	3.2	3.0
Queue time per unit	4.7	5.5	6.4	7.4
Inspection time per unit	0.6	0.8	0.8	0.6
Total	9.80	10.20	11.00	11.60

B). Delivery Cycle=

	Average Per Month{In days}
Particulars	1	2	3	4
Move time per unit	0.9	0.5	0.6	0.6
Process time per unit	3.6	3.4	3.2	3.0
Wait time per order before start of production	18.0	19.70	23.0	24.80
Queue time per unit	4.7	5.5	6.4	7.4
Inspection time per unit	0.6	0.8	0.8	0.6
Total	27.80	29.90	34.00	36.40

C). Manufacturing Cycle Efficiency=Value Added time/ Throughput time

Particulars	1	2	3	4
Process Time	3.6	3.4	3.2	3.0
Throughput Time	9.80	10.20	11.00	11.60
Manufacturing Cycle Efficiency	36.73%	33.33%	29.09%	25.86%

2 By above Data , We can evaluate the company performance as we can see in past 4 Months manufacturing cycle efficiency is decreasing from Month 1 to Month 4 i.e. 36.73% to 25.86% and Delivery Cycle is Increasing from Month 1 to Month 4 i.e. 27.8 to 36.40

3.

A). Manufacturing Cycle Efficiency for Month 5

	Average Per Month{In days}
Particulars	1	2	3	4	5
Move time per unit	0.9	0.5	0.6	0.6	0.6
Process time per unit	3.6	3.4	3.2	3.0	3.0
Queue time per unit	4.7	5.5	6.4	7.4	-
Inspection time per unit	0.6	0.8	0.8	0.6	0.6
Total	9.80	10.20	11.00	11.60	4.20

Manufacturing Cycle Efficiency= Process time/ Throughput time

For month 5= 3.0/4.2*100

=> 71.43%