Question

400 points 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 eficiency (MCE) Percentage of on-tme deliveries Total sales (unts) 76% 77% 82% 89% 0,58010,580 10,440 10.550 Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The folowing average times have been logged over the last four months Average per Month in days) 07 Move tme per unt Process sime per unt Wat sme per order before start of production Queue time per unit Inspection time per unit 0.7 0.4 07 0.5 0506 07 10.0 37 4.0 1.7 8.0 5.0 4.0 2.6 0504070.7

Answer 1

1-a.

Throughput time = Process time + Inspection time + Move time + Queue time

	Month
	1	2	3	4
Move time per unit	0.7	0.7	0.4	0.7
Process time per unit	0.5	0.5	0.6	0.7
Queue time per unit	3.7	4	2.6	1.7
Inspection time per unit	0.5	0.4	0.7	0.7
Throughput time (in days)	5.4	5.6	4.3	3.8

1-b.

Manufacturing Cycle Efficiency (MCE) = Process time/ Throughput time

	Month
	1	2	3	4
Process time per unit	0.5	0.5	0.6	0.7
÷Throughput time	5.4	5.6	4.3	3.8
MCE	9.3%	8.9%	14.0%	18.4%

1-c.

Delivery cycle time = Wait time + Process time + Inspection time + Move time + Queue time

	Month
	1	2	3	4
Wait time	10.0	8.0	5.0	4.0
Move time per unit	0.7	0.7	0.4	0.7
Process time per unit	0.5	0.5	0.6	0.7
Queue time per unit	3.7	4	2.6	1.7
Inspection time per unit	0.5	0.4	0.7	0.7
Delivery cycle time(in days)	15.4	13.6	9.3	7.8

3-a.

	Month 5
Move time per unit	0.7
Process time per unit	0.7
Inspection time per unit	0.7
Throughput time (in days)	2.1

	Month 5
Process time	0.7
÷Throughput time	2.1
MCE	33.3%

3-b.

	Month 6
Move time per unit	0.7
Process time unit	0.7
Throughput time (in day)	1.4

	Month 6
Process time unit	0.7
÷Throughput time	1.4
MCE	50.0%