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) Month 7 ? 7 2 928 87% 2,060 1,972 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 7 7 84% 1,871 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: ? 81% 0.7 3.0 23.0 1,800 Average per Month (in days) 1 2 4 0.4 4.2 0.9 25.2 4.7 1.1 3 0.5 2.7 28.0 5.3 1.1 0.5 2.5 30.3 6.0 0.9 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 s forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the
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) Month 7 ? 7 2 928 87% 2,060 1,972 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 7 7 84% 1,871 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: ? 81% 0.7 3.0 23.0 1,800 Average per Month (in days) 1 2 4 0.4 4.2 0.9 25.2 4.7 1.1 3 0.5 2.7 28.0 5.3 1.1 0.5 2.5 30.3 6.0 0.9 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 s forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the
Chapter1: Financial Statements And Business Decisions
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