DataSpan Inc automated its plant at the start of the current

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. Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 77% 72% 69% 66% 3888 3715 3525 3391 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) Move time per unit Process time per unit Hait time per order before start of production Queue time per unit Inspection time per unit e.4 0.5 0.7 3.7 3.5 3.3 3.1 0.5 25.0 27.4 31.8 33.5 4.5 5.2 6.0 6.9 0.6 0.8 0.8 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. Complete this question by entering your answers in the tabs below

Solution

1-a

Throughput time

1

2

3

4

Throughput Time in days

Process time

3.7

3.5

3.3

3.1

Inspection time

0.6

0.8

0.8

0.6

Move time

0.7

0.4

0.5

0.5

Queue time

4.5

5.2

6

6.9

Total throughput time

9.5

9.9

10.6

11.1

1-b

Delivery cycle time for each month

Wait time

25

27.4

31

33.5

Throughput time

9.5

9.9

10.6

11.1

Total delivery cycle time

34.5

37.3

41.6

44.6

1-c

Manufacturing Cycle efficeincy

Process time/Throughput time

38.9%

35.4%

31.1%

27.9%

Throughput

Delivery cycle

MCE

Month 1

9.5

days

34.5

days

38.9

%

Month 2

9.9

days

37.3

days

35.4

%

Month 3

10.6

days

41.6

days

31.1

%

Month 4

11.1

days

44.6

days

27.9

%

2

The Throughput time measure dispalays

Increasing

trends

The Delivery cycle time days measure displays

Increasing

trends

Manufacturing Cycle efficiecy Days measure dispalys

Declining

trends

                    All performance measure displays unfavorable trends.

3-a and 3b

5

6

Throughput time in days

Process time

3.1

3.5

Inspection time

0.6

0

Move time

0.5

0.4

Total throughput time

4.2

3.9

MCE

73.81%

89.74%

Throughput

MCE

Month 5

4.2

days

73.81

%

Month 6

3.9

days

89.74

%

1-a	Throughput time
		1	2	3	4
	Throughput Time in days
	Process time	3.7	3.5	3.3	3.1
	Inspection time	0.6	0.8	0.8	0.6
	Move time	0.7	0.4	0.5	0.5
	Queue time	4.5	5.2	6	6.9
	Total throughput time	9.5	9.9	10.6	11.1
1-b	Delivery cycle time for each month
	Wait time	25	27.4	31	33.5
	Throughput time	9.5	9.9	10.6	11.1
	Total delivery cycle time	34.5	37.3	41.6	44.6
1-c	Manufacturing Cycle efficeincy
	Process time/Throughput time	38.9%	35.4%	31.1%	27.9%
		Throughput		Delivery cycle		MCE
	Month 1	9.5	days	34.5	days	38.9	%
	Month 2	9.9	days	37.3	days	35.4	%
	Month 3	10.6	days	41.6	days	31.1	%
	Month 4	11.1	days	44.6	days	27.9	%