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 1 2 3 ? Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 76% 72% 69% 66% 3050 291927702666 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: 1 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 0.9 0.7 0. 9 0 .9 2.3 2.2 2.1 2.0 19.0 20.8 23.0 24.8 4.5 5.2 6.0 6.9 0.4 0.5 0.5 0.4

Answer 1

days days Throughput Delivery Cycle Manufacturing Time Time Cycle Efficiency (MCE) Month 1 8.1 days 27. 1 days 28.4 Month 2 29.4 25.6 Month 3 9.5 32.5 22.) L Month 4 I 10.2 days 3500 days / 19.6 % Calculation : Ja, Through put Time = (Process Time & Inspection Time & More - Time & Queue Time) Throughput time for month 1 = 12:3+ 0.4 +0.9 +4.5) days = 8.1 days Throughput Time for month 2=(2.27 0.5+0.74 5:2) days = 8.6 days Throughput Time for month 3= (2.1 +0.5+ 0.g + 6:0) days = 9.5 days Throughputo Time for month u = (2.0+ 0.4 to. g + 6.9) days. = 10. 2 days 1b) Delivery cycle time = (wait Time & Throughput Time) Delivery cycle time for month 1 = (19.0+ 8.1) days. - 27.1 days

Delivery Cycle time for month 2 = (2018 + 8.6) days e 29.4 days Delivery Cycle time for month 3 = 123.0 + 9.5) days = 32.5 days Delivery Cycle time for month 4 = (2408 + 10:2) days = 35 days (IC) Manufacturing Cycle Efficiency & Process time x100 Throughput time MCE for month 1 = (2.3 + 8.1)days & 100 » 28.4% MCE for month 2 = (2.2 + 8.6) days x 100 3 25.6% MCE for month 3 = (211 + gos) days & 100 22.1% MCE for month n=(2.0 + 1012) days x 100 3 19.6% (2) The throughput time measure displays unfavorable trends the Delivery Cycle time - days measure displays unfavorable trends Manufacturing Cycle Efficiency-days measure display, Unfavorable trends Explanatien'. All of the performance measures display unfavorable trends Queue 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 Mouth 6 Throughput Time 3.3 days 2.9 days - Manufacturing Cycle Efficiency | 60.6 % 69.0 %. Calculation: Bas New Throughput Time for month 5= Process time t Inspection time & Move time) : (2.0 + 0.4 +0.g) days - 313 days New MCE for month s= (Process time - Throughput Time) x 100 = (2.05 3.3) days x 100 = 60.6% 3b) New Throughput Time for month 6 = (Process time & More time) = (2.0+ 0.g) days = 2.9 days New mee for month 6 = {(Process time & Throughput Time) x 100 - (2.0+ 2.9) x100 = 68.96% or 69.0%