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 m n Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) NO. n. n. Ann . n. n. 82% 2100 77% 2010 74% 1907 71% 1835 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 4. 0.6 0.3 0.4 0.4 2.3 2.2 2.1 2.0 20.0 21.9 26.0 28.0 4.7 5.5 6.4 7.4 0.8 1.1 1.1 0.8 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.

Answer 1

Thoroughput Time Month 1 8.4 manufacturing cycle Efficiency (MCE), days 27.4 days days Month 2 Delivery cycle Time days 28.4 days 31 36 days 38.6 9.1 24.8 Month 3 10 days 21 Month 4 10.6 days 18.9 Calculation: (a) Throughput time = (Process time + Inspection time & Move time + dueue time) Throughput time for month 1 = (2.3 +0.0 + 0.6 + 4.7 days. = 8.4 days throughput time for month 2 = (212 + 1.1 +0.3 + 5.5 days = 9.1 days Throughput time for month 3 = (2.1 + 1.1 +0.4+ 6. 4) days = 10 days Throughput time for month 4 (200+ 0.8 +0.44 7.4) days - 10.6 days (b) Delivery cycle time = wait time & throughput time Delivery cycle time for month 1 = (20.0 + 8.4) days = 2014 days Delivery cycle time for month 2 = (2119 + 9.1) days = 31 days Delivery cycle time for month 3 = (2600+ 10) days = 36 days Delivery cycle time for month 4 = (28.0 + 10.6) days - 30.6 days

Process time X100 (c) Manufacturing cycle Efficiency = Throughput time" MCE for month 1 = (213 - 8.4 x 100 = 27.4% for month 2 = (2.2 = 9. 1) x 100 = 24.8.fo MCE MCE MCE for month = (2.1 - 10 x 100 = 21% for month 4 = (2.0 1006) x 100 = 18.9.f.