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. Throughout te (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 2530 2031 2297 2219 Management has asked for your help in computing throughout time, delivery cycle time, and MCE The following average times have been logged over the last four months verare per Month (in days) 0.5 23 Move tise per unit Process time per unit wait time per order before start of production Queue tine per unit Inspection time per unit 3.1 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 1-a. Compute the throughout 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. (Round your answers to 1 decimal place.) - Throughput Time Delivery Cycle Time Manufacturing Cyclo Eficiency (MCE) Month 1 days days days Month 3 Required 2 >

Answer 1

	Move time per unit (A)	Process Time per unit(B)	Wait time per order(C)	Queue Time per unit(D)	Inspection time per unit(E)	Throughput time(F=A+B+D+E)	Delivery Cycle Time(G=A+B+C+D+E)	Manufacturing cycle efficiency(H=100*B/F)
Month 1	0.7	3.3	24.0	5.0	0.4	9.4	33.4	35.11%
Month 2	0.4	3.1	26.3	5.9	0.6	10.0	36.3	31%
Month 3	0.5	2.9	31.0	6.9	0.6	10.9	41.9	26.61%
Month 4	0.5	2.7	33.4	8.1	0.4	11.7	45.1	23.08%

The company has been improving its manufacturing process but the manufacturing efficiency is declining over the months. The processing time is declining while throughput time is increasing. This can be attributed to better technology or improvement of manufacturing base but at the same time, Queueing time increasing. This is leading to declining efficiency.