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 34 Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 91% 3,210 86% 3,072 83% 2,915 79% 2,806 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: 0.4 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) - 1 2 3 4 0.4 0.3 0.4 2.1 - 2.0 1.9 1.8 16.0 17.5 19.0 20.5 4.3 5.0 5.8 6.7 0.6 0.7 0.7 0.6 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

Throughput Time Delivery cycle time Manufacturing Cycle Efficiency (MCE) 28.4 Month 1 7.4 23.4 days days Month 2 8 25.5 days 25 Month 3 8.8 9.5 days days 27.8 30 days days 21.6 18.9 Month 4 Month 5 Month 6 throughput time days days 2.8 64.3 2.2 81.8 Manufacturing cycle I efficiency (MCE) Calculations I (a) Throughput time = { Process time of Inspection time t. move time & Queure time) Throughput time for month 1 = (2.1 +0.6 + 0.4+ 4.3). = 7.4 days Throughput time for month 2 = (210+ 0.7+ 0.3 + 5.0) = 8 days Throughput time for month 3 = 119 +0.7 +0.4+ 5.8) = 8.8 days Throughput time for month y = (18+ 0.6+0.4+ 6.7) - 9.5 days

(1) (b) Delivery Delivery cycle Time & Wait time & Throughput time Delivery cycle time for month 1 = ( 16.0+ 1.4) days = 23.4 days Delivery cycle time for month 2 = (19.5+ 8) days = 25.5 days Delivery cycle time for month 3 = (19.0+ 8.8 days = 27.8 days Delivery cycle time for month 4 = (20.5+ 9.5) days. = 30 days (1) (c) Manufacturing -X100 Process Time Cycle Efficiency - Throughput time. MCE for month 1 = 2.1 + 714) x 100 = 28.4% MCE for month 2 = (2.0 + 8) x 100 = 25% MCE for month 3 = (1,938.8) X100 = 21.6"). MCE for month 4 = (48 + 9.5x100 = 18.9%. (2) Be cause queue time and wait time per order is increasing before the production started that's why the manufacturing cycle efficiency of the company is decreasing

(3 (2) New Throughput time for month 5 Throughput time = (Process time & Inspection time & move time) = = (18+ 0.6 + 0.4) days 2.8 days New MCE for month 5. Process time & Throughput time) Xloo (18-248) X 100 = 64,37 (3) (6) 3 New New Throughput time for month 6 = 1 Process time & Move time) - (peat 0.4) days = 2.2 days New MCE for month 6 = ( Process time & Throughput time) x 100 = (4.8 - 2.2) X100 - 81.81