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.
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![### 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F00dbdd0a-875e-45f9-a8b4-80a60c6916ad%2Fca078bd6-f72e-4c35-8205-b80cc0457da6%2F74wd2jh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### 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
Transcribed Image Text:### 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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