In: Accounting
The accounting manager has requested you to calculate the throughput time, delivery cycle time, and MCE. The following average times have been recorded for the last four months:
Average per Month (in days) |
||||
Feb |
Mar |
Apr |
May |
|
Process time per unit |
2.16 |
2.28 |
2.4 |
2.52 |
Wait time per order before start of production |
24.6 |
22.8 |
21 |
19.2 |
Inspection time per unit |
0.72 |
0.84 |
0.84 |
0.72 |
Move time per unit |
0.48 |
0.48 |
0.36 |
0.48 |
Queue time per unit |
8.04 |
6.96 |
6 |
5.16 |
Required:
Compute the following for each month:
a. The throughput time.
b. The delivery cycle time.
c. The manufacturing cycle efficiency (MCE).
Evaluate the company’s performance over the last four months . Explain with four reasons (less than 35 words).