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 Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 2790 2671 2534 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 Monthin days) 0.6 3.7 26.) 3.5 29.0 3.3 31.4 24.0 Move time per unit Process time per unit Wait time per order before start of production Queue tine per unit Inspection time per unit 0.5 0.6 0.6 0.5 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

Answer 1

Inspection time + move. us throughput time = (Process time & time & aucue time) Throughput time for month I = (3,9 +0.5+0.9+ 4.8 days = 1011 days Throughput time for month 2 = (3.7 +0.6+ 0.6+ 5.4.) days = 10.3 days Throughput time for month 3 = 13.5+ 0.6 +0.7 +601) days = 10.9 days Throughput time for month 4 = (3.3 +0.5 +0.7+ 6.9) days. = 11.4 days (b) Delivery cycle Time = wait Time & Throughput Time Delivery cycle Time for month 1 = (24.0t 10.1) days. = 34.1 days Delivery Cycle Time for month 2 = (26.3t 10.3) days = 36.6 days Delivery Cycle Time for month 3 = (2910 + 10.g) days = 39.9 days Delivery Cycle Time for month 4 = (31.4 + 11.4) days = 42.8 days

(C) Manufacturing cycle Efficiency a Process time x 100 Throughput time Mce for month 1 = (3.9 ÷ 10.1) days x 100 = 38. MCE for month 2 = (3.7 – 10.3) days x 100 = 32 MCE for month 3 = (3.510.9) days x 100 = 32.11% MCE for month 4 = (3.3 ÷ 11.4) days x 100 = 20.95% 2. The manufacturing cycle efficiency is decreasing as the queue time per order and wait time per order are increasing (3 (as new throughput time for month 5 » Throughput time & Process time & Inspection timet move time) = (3.3 +0.5 + 0.7 days - 4.5 days New MCE for month 5: MCE & Process time & Throughput time) x 100 - (3.3 + 405) days X 100 = 73.33%

b. New throughput time for month 6: Throughput time = Process time & Move time) = (3.3+0.7) days = 4 days New MCE for mouth & s time & Throughput Time) x 100 = (3.3 ÷ 4) x 100 = 82.5%