DataSpan, Incorporated, implemented Lean Production and would like to redesign its performance measures accordingly. It has provided the following data sets: Percentage of on-time deliveries Total sales (units) 85% 2,180 Month 3 2 77% 80% 2,087 1,980 74% 1,905 Average per Month (in days)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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DataSpan, Incorporated, implemented Lean Production and would like to redesign its performance measures accordingly. It has
provided the following data sets:
Percentage of on-time deliveries
Total sales (units)
Move time per unit
Process time per unit
Wait time per order before start of production
Queue time per unit
Inspection time per unit
Required 1
Required 2
Month 1
Month 2
Month 3
Month 4
2
85%
80%
2,180 2,087
Required 3
Month
Complete this question by entering your answers in the tabs below.
Throughput Time
days
days
days
days
3
77%
1,980
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.
Note: Round your answers to 1 decimal place.
Delivery Cycle Time
days
days
days
days
< Required 1
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 data for month 4. Assume in month 5 the company uses Lean Production to completely eliminate the queue time, and
all else remains the same as month 4. Compute the new throughput time and MCE.
3-b. Refer to the data for month 4. Assume in month 6 the company eliminates all queue time and inspection time, and all else remains
the same as month 4. Compute the new throughput time and MCE.
4
1,905
Average per Month (in days)
1
2
0.8
3.1
24.0
4.7
0.5
74%
0.5
2.9
26.3
5.3
0.6
Manufacturing Cycle
Efficiency (MCE)
%
%
%
%
3
0.6
2.8
29.0
6.0
0.6
Required 2 >
0.6
2.6
31.4
6.8
0.5
Show less A
Transcribed Image Text:DataSpan, Incorporated, implemented Lean Production and would like to redesign its performance measures accordingly. It has provided the following data sets: Percentage of on-time deliveries Total sales (units) Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit Required 1 Required 2 Month 1 Month 2 Month 3 Month 4 2 85% 80% 2,180 2,087 Required 3 Month Complete this question by entering your answers in the tabs below. Throughput Time days days days days 3 77% 1,980 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. Note: Round your answers to 1 decimal place. Delivery Cycle Time days days days days < Required 1 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 data for month 4. Assume in month 5 the company uses Lean Production to completely eliminate the queue time, and all else remains the same as month 4. Compute the new throughput time and MCE. 3-b. Refer to the data for month 4. Assume in month 6 the company eliminates all queue time and inspection time, and all else remains the same as month 4. Compute the new throughput time and MCE. 4 1,905 Average per Month (in days) 1 2 0.8 3.1 24.0 4.7 0.5 74% 0.5 2.9 26.3 5.3 0.6 Manufacturing Cycle Efficiency (MCE) % % % % 3 0.6 2.8 29.0 6.0 0.6 Required 2 > 0.6 2.6 31.4 6.8 0.5 Show less A
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