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 83 % 78 % 75 % 72 % Total sales (units) 2700 2585 2453 2360 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 0.6 0.3 0.4 0.4 Process time per unit 2.0 1.9 1.8 1.7 Wait time per order before start of production 21.0 23.0 26.0 28.1 Queue time per unit 4.0 4.6 5.3 6.1 Inspection time per unit 0.4 0.5 0.5 0.4 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.

Answer 1

ons throughput Time = (Process time & Inspection time t Move time & Queue time) roughput Time for month 1 = (2.0 t 0.4+0.6+ 4.0) days = 7 days roughput Time for month 2 =110g +0.5+ 0.3+4.6) days = 7.3 days Throughput Time for month 3= (1.8toisto.4+ 5.3) days = 8 days Throughput Time for month u=(117+0.4+ 0.4+ 6. 1) days = 8.6 days aby Delivery cycle Time = wait Time & Throughput Time Delivery cycle Time for month 1 = (2100 + 70) days = 28° 0 days Delivery cycle Time for month 2 = (23.0 + 7.3 days = 30.3 days Delivery Cycle Time for month 3 = (2610 + 8.0) days = 34.0 days Delivery Cycle Time for month 4 = (28. 1 + 8.6 days = 36.7 days

Icy Manufacturing cycle Efficiency = Process Time & 100 Throughput Time MCE for month 1 = 12.0 7.0) days x 100 = 28.57% for month 2 = lieg - 7.3] x 100 = 26.03% MCE for month 3 = (1.8 + 8.0) days x 100 = 22.5% MCE for month 4 = (1.7 & 8.6) days x 100 = 19.77% (2) The manufacturing cycle efficiency is decreasing as the queue time per order and wait time per order are increasing. " صوره د Throughput time for months (Process time & Inspection time t Move time) (117+ 0.4 +0.4) days. - 2.5 days

New MCE for months = rocess Time - Throughput Time) x100 = (117 & 2.5) days x 100 = 68% -3b) New Throughout time for month 6 = (Process time t more time) = (1.7+ 0.4) days = 211 days New MCE for mont ess time & Throughput time) X100) = (1.7 = d.1) days x100 = 80.95%