### Problem 10-14 Measures of Internal Business Process Performance [LO10-3]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.#### Performance Data Overview| Month | 1 | 2 | 3 | 4 ||---------------------------------|-------|-------|-------|-------|| **Throughput time (days)** | ? | ? | ? | ? || **Delivery cycle time (days)** | ? | ? | ? | ? || **Manufacturing cycle efficiency (MCE)** | ? | ? | ? | ? || **Percentage of on-time deliveries** | 92% | 87% | 84% | 81% || **Total sales (units)** | 2060 | 1972 | 1871 | 1800 |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:#### Logged Average Times Per Month (in days)| | 1 | 2 | 3 | 4 ||---------------------------------|-------|-------|-------|-------|| **Move time per unit** | 0.7 | 0.4 | 0.5 | 0.5 || **Process time per unit** | 2.8 | 2.9 | 2.7 | 2.5 || **Wait time per order before start of production** | 23.0 | 25.2 | 28.0 | 30.3 || **Queue time per unit** | 4.9 | 5.3 | 5.8 | 6.0 || **Inspection time per unit** | 0.9 | 1.1 | 1.1 | 0.9 ### Throughput Time and Manufacturing Cycle Efficiency Analysis**Objective:**To analyze the required throughput times, delivery cycle times, and manufacturing cycle efficiencies (MCE) over a four-month period, and assess the impact of implementing Lean Production techniques on these metrics.**Tasks:****1-a. Compute the throughput time for each month.** - Throughput time refers to the total time it takes for a product to be manufactured, from start to finish.**1-b. Compute the delivery cycle time for each month.** - Delivery cycle time encompasses the entire span from order receipt to the delivery of the finished product to the customer.**1-c. Compute the manufacturing cycle efficiency (MCE) for each month.** - MCE is calculated as the ratio of value-added production time to total production time.**2. Evaluate the company’s performance over the last four months.****3-a. Refer to the move time, process time, and other variables for month 4. Assume that in month 5 the move time, process time, and associated times are the same as in month 4, but through the use of Lean Production, the company can eliminate the queue time during production. Compute the new throughput time and MCE.****3-b. Perform a similar analysis for month 6, where the company can eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.****Evaluation Response Panel:** - Evaluate the company's performance trends over the last four months. Indicate whether each trend is "Favorable" or "Unfavorable." The metrics to be evaluated include:- **The Throughput Time**- **The Delivery Cycle Time (in days)**- **Manufacturing Cycle Efficiency (in days)**These metrics form the basis for the performance evaluation. **Interface Instructions:** - Complete the provided sections in the response fields labeled "Req 1," "Req 2," and "Req 3." - Use the selection options to indicate whether the trends are "Favorable" or "Unfavorable," or select "None" if there is no variance.**Navigation:** - To input answers for each requirement, users can navigate between tabs labeled "Req 1," "Req 2," and "Req 3" respectively.This analysis will guide the improvement of production processes and efficiency, illustrating the potential impact of Lean Production

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Description: ### Problem 10-14 Measures of Internal Business Process Performance [LO10-3]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 t

Throughput time is the total time taken by a process to get completed. It is measured from the start…

Business

Accounting

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.

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.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 58P: Merkley Company, a manufacturer of machine parts, implemented lean manufacturing at the end of 20X1....

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DataSpan, Incorporated, 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 82% 77% 74% 71% Total sales (units) 3830 3667 3479 3347 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 0.8 0.5 0.6 0.6 Process time per unit 2.3 2.2…
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 4 Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) ? ? ? 89% 84% 81% 78% 3880 3714 3524 3390 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) 2 3 4 Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per…
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 78 % 73 % 70 % 67 % Total sales (units) 2330 2230 2116 2036 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 0.8…
Measures of Internal Business Process Performance 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. 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: Required: 1. For each month, compute the following: a. The throughput time. b. The delivery cycle time. c. The manufacturing cycle efficiency (MCE). 2. Evaluate the company’s performance over the last four months. 3. Refer to the move lime, process time, and so forth, given above for month 4. a. Assume that…
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Problem 12-15 (Algo) Internal Business Process Performance Measures [LO12-3] Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company is finding it necessary to make many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory. In an effort to evaluate performance and determine where improvements can be made, management has gathered the following data relating to activities over the last four months: Month 1 2 3 4 Quality control measures: Number of defects 203 181 142 97 Number of warranty claims 64 57 48 45 Number of customer complaints 120 114 97 76 Material control measures: Purchase order lead time 10 days 9 days 7 days 5 days Scrap as a percent of total cost 1 % 1 % 2 % 3 % Machine performance measures: Machine downtime as a…
2 Management of Mittel Company would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: Inspection time. Wait time (from order to start of production) Process time Move time Queue time Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answer to nearest whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place.) 1.…
The management of International Cookwares believes that delivery performance measures must be improved if the company is to maintain its competitive edge. The following data are considered to be typical of the time to complete orders. • Process time: 4 days • Wait time to the start of production: 15 days • Move time: 3 days ● Inspection time: 2 days • Queue time during the production process: 8 days What is the delivery cycle time?
DataSpan, Inc., automated its plant at the start of the current year and installed a flexiblemanufacturing system. The company is also evaluating its suppliers and moving toward LeanProduction. Many adjustment problems have been encountered, including problems relating toperformance measurement. After much study, the company has decided to use the performancemeasures below, and it has gathered data relating to these measures for the first four months ofoperations.Month1 2 3 4Throughput time (days) ? ? ? ?Delivery cycle time (days) ? ? ? ?Manufacturing cycle efficiency (MCE) ? ? ? ?Percentage of on-time deliveries 91% 86% 82% 78%Total sales (units) 3460 3312 3143 3025Management 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 4Move time per unit 0.7 0.5 0.6 0.6Process time per unit 2.8 2.7 2.6 2.5Wait time per order before start of production 23.0…