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 Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 2044 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 0.7 Average per Month (in days) 23 0.9 0.6 9.7 2.2 2.1 2.0 18. 19.7 22.0 23.8 4.8 5.4 6.9 0.9 1.1 1.1 0.9 Move time per unit Process time per unit Wait time per order before start of production Queue tine per unit Inspection time per unit 2.3

Answer 1

Ans.	The Throughput time measure displays			Favorable	trends
	The delivery cycle time - days measure displays			Favorable	trends
	Manufacturing cycle efficiency - days measure displays			Unfavorable	trends
	*Throughput time & Delivery are increasing every month so, theses are favorable trends.
	*Manufacturing cycle time is decreasing every month so, this is an unfavorable trend.
(i)	Throughput time = Move time + Process time + Queue time + Inspection time
		Months
	Particulars	1	2	3	4
	Move time per unit	0.9	0.6	0.7	0.7
	Process time per unit	2.3	2.2	2.1	2
	Inspection time per unit	0.9	1.1	1.1	0.9
	Queue time	4.8	5.4	6.1	6.9
	Total (Throughput Time)	8.9 days	9.3 days	10 days	10.5 days
(ii)	Manufacturing cycle efficiency = Process time or value added time / Throughput time * 100
	Months
	1	2.3 / 8.9 * 100	25.8%
	2	2.2 / 9.3 * 100	23.7%
	3	2.1 / 10 * 100	21.0%
	4	2 / 10.5 * 100	19.0%
(iii)	Delivery cycle time = Throughput time + Wait time per order before start of production
	Months
	1	8.9 + 18	26.9	days
	2	9.3 + 19.7	29	days
	3	10 + 22	32	days
	4	10.5 + 23.8	34.3	days
Ans. 3		Month 5	Month 6
	Throughput time	3.6 days	2.7 days
	Manufacturing cycle efficiency (MCE)	55.6%	74.1%
	*Calculations:
Ans. 3 a	Month 5 :
	Throughput time:
	Move time per unit	0.7
	Process time per unit	2
	Inspection time per unit	0.9
	Total	3.6	days
	MCE (manufacturing cycle efficiency) = Process time / Throughput time * 100
		2 / 3.6 * 100
		55.6%
Ans. 3 b	Month 6 :
	Throughput time:
	Move time per unit	0.7
	Process time per unit	2
	Total	2.7	days
	MCE (manufacturing cycle efficiency) = Process time / Throughput time * 100
		2 / 2.7 * 100
		74.1%