Question

Data Span, 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 2 ? Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 78% 3780 74% 3618 71% 3433 68% 3304 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: Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit Average per Month (in days) 2 3 4 0.7 0.5 0.6 0.6 2.3 1 2 .2 2 . 1 2 .0 25.0 27.4 30.0 32.4 4.9 5.6 6.4 7.3 0.4 0.5 0.5 0.4

Answer 1

Time Throughput Delivery Cycle Manufacturing time Cycle Efficiency (mee Month 1 8.3 days 33.3 days 27.7 Month 2 8.8 days 3612 days 25.0 - Month 3 9.6 days 39.6 days 21.9 Mouth 4 10 3 days 4217 days 19.4 Calculation: Tas Throughput Time & l Process time & Inspection time & More time & aueue time) throughput time = (2.3 +0.4+ 0.7+ 40 g) days for month 1 = 8.3 days throughput time for month 2 = (2+2+0.5+0.5+5:6) days e 8.8 days Throughput time for month 3=(2.1 + 0.5 to 6 + 6:4) days. = 9.6 days throughput time for month u = (200 +0.4 +0.6 + 7.3) days = 10.3 days Ib) Delivery cycle Time = (wait time & Throughput time) Delivery cycle time for month 1 = (25.0+ 8.) days = 33. 3 days

Delivery Cycle time for month 2 = (27.4 + 8.8 days i 3612 days Delivery Cycle time for month 3 =(3000 + 9.6) days = 39,6 days Delivery Cycle time for monta 4 = (3204 + 10.3) days = 42 17 days Ic, Manufacturing Cycle Efficiency = Process time x 100 throughput time MCE for month 1 = (2.3 + 8.3) days x 100 = 27.7% MCE for month 2 =(2.2 + 8 8) days x 100 zs 25.0% MCE for month 3 = (211 i 9.6) days x 100 2 21.9% MCE for month 4 = (2.0 - 10.3) days x 100 = 19.4%

The throughput Time measure displays Unfavorable The Delivery cycle Time - days measure displays Unfavorable Manufacturing Cycle efficiency-days measure trends trends displays Unfavorable trends (2) All of the performance measures display unfavorable trends. Oueue time is increasing that's why throughput time per unit is increasing. Manufacturing Cycle efficiency is declining and delivery cycle time is increasing. In addition, the percentage of on-time deliveries has dropped.

Month 5 Month 6 Throughput Time 310 days 2.6 days Manufacturing Cycle Efficiency 66.7 % 76.9 % Calculation: 3a, wew Throughput time for month 5 = (Process time & Inspection time & more time) : (2.0 t 0.4+ 0.6) days. = 3 days New MCE for month s= (Process time Throughput time) x1000 =42.0 + 3) days xloo - 66.7% (3b New throughput time for month 6 = (Process time + Move time) - (2.0 t 0.6) days € 2.6 days New MCE for month 6 (Process time - Throughput Time) x 100 = (2.0 - 2.6) days x 100 = 76.9%