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	4
Throughput time (days)	?	?	?	?
Delivery cycle time ( Days)	?	?	?	?
Manufacturing cycle efficiency ( MCE)	?	?	?	?
Percentage of on-time deliveries	76%	72%	69%	66%
Total Sales ( Units)	3050	2919	2770	2666

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 Month (in days)
	1		2		3		4
Move time per unit	0.9		0.7		0.9		0.9
Process time per unit	2.3		2.2		2.1		2.0
Wait time per order before start of production	19.0		20.8		23.0		24.8
Queue time per unit	4.5		5.2		6.0		6.9
Inspection time per unit	0.4		0.5		0.5		0.4

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

The answer is provided in picture.

Throughput Time = Move Time + Process Time + Queue Time + Inspection Time [Calculated in days for given question]

Delivery Cycle Time = Wait Time + Throughput Time [Calculated in days for given question]

Manufacturing Cycle Efficiency = Process Time / Throughput Time

1-alTotal throughput Time 1 0.9 2.3 4.5 0.4 8.1 3 0.9 2.1 Move Time (a) Process Time (b) Queue Time (c) Inspection lime (d) Throughput Time (atbtc+d) 0.7 2.2 5.2 5.2 13.3 0.9 2 6.9 6.9 16.7 15 1-b Delivery Cycle Time Wait Time (a) Throughput Time (b) Total Delivery cycle Time (a+b) 19 8.1 27.1 20.8 13.3 34.1 23 15 38 24.8 16.7 41.5 1-c Manufacturing cycle efficienc Process Time Throughput Time Manufacturing cycle efficiency(in %) 2.3 8.1 28.40 2.2 13.3 16.54 2 16.7 14.0011.98 2.1 15

2) Throughput time measure displays Unfavourable Trend as the time goes increasing Unfavourable Trend as the time goes in oll Delivery Cycle time displays Manufacturing cycle efficiency displays Favourable Trend as time get reduced creasing 3) 5th Month 6th Month Move Time Process Time Queue Time Inspection Time Throughput Time 0.9 2 0 6.9 9.8 0.9 2.9

1-alTotal throughput Time 1 0.9 2.3 4.5 0.4 8.1 3 0.9 2.1 Move Time (a) Process Time (b) Queue Time (c) Inspection lime (d) Throughput Time (atbtc+d) 0.7 2.2 5.2 5.2 13.3 0.9 2 6.9 6.9 16.7 15 1-b Delivery Cycle Time Wait Time (a) Throughput Time (b) Total Delivery cycle Time (a+b) 19 8.1 27.1 20.8 13.3 34.1 23 15 38 24.8 16.7 41.5 1-c Manufacturing cycle efficienc Process Time Throughput Time Manufacturing cycle efficiency(in %) 2.3 8.1 28.40 2.2 13.3 16.54 2 16.7 14.0011.98 2.1 15

2) Throughput time measure displays Unfavourable Trend as the time goes increasing Unfavourable Trend as the time goes increasing oll Delivery Cycle time displays Manufacturing cycle efficiency displays Favourable Trend as time get reduced 3) 5th Month 6th Month Move Time Process Time Queue Time Inspection Time Throughput Time 0.9 2 0 6.9 9.8 0.9 2.9