Dataspan, Incorporated, automated its plant at the start 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Throughput Time measure displays
The Delivery cycle time measure displays
Manufacturing cycle efficiency measure displays
trends
trends
trends
Transcribed Image Text:The Throughput Time measure displays The Delivery cycle time measure displays Manufacturing cycle efficiency measure displays trends trends trends
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.
Throughput time (days)
Delivery cycle time (days)
Manufacturing cycle efficiency (MCE)
Percentage of on-time deliveries
Total sales (units)
1
?
?
Move time per unit
Process time per unit
Wait time per order before start of production
Queue time per unit
Inspection time per unit
2
Month
3
?
?
?
?
?
?
?
91%
86%
82%
3,030 2,900 2,752
4
?
?
?
78%
2,649
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
4
2
0.7
0.9
2.9
2.8
19.0
20.8
4.4
5.1
0.7
0.9
3
0.9
2.7
23.0
5.9
0.9
0.9
2.6
24.8
6.8
0.7
Transcribed Image Text: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. Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 1 ? ? Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit 2 Month 3 ? ? ? ? ? ? ? 91% 86% 82% 3,030 2,900 2,752 4 ? ? ? 78% 2,649 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 4 2 0.7 0.9 2.9 2.8 19.0 20.8 4.4 5.1 0.7 0.9 3 0.9 2.7 23.0 5.9 0.9 0.9 2.6 24.8 6.8 0.7
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