Melody Fabrications, Ltd., of Dasmariñas, Cavite, has recently begun a continuous improvement campaign in conjunction with a move toward JIT production and purchasing. Management has developed new performance measures as part of this campaign. The following operating data have been gathered over the last four months: Chapter 7 Month 2. 1 ? ? Throughput time, or velocity... Manufacturing cycle efficiency... Delivery cycle time Percentage of on-time deliveries.... Total sales (units). ? 78% 85% 72% 73% 10,550 10,490 10,540 10,570 Management would like to know the company's throughput time, manufacturing cycle efficiency, and delivery cycle time. compute these measures have been gathered and appear below: The data to Month 1 3 4. 0.5 0.4 0.5 0.5 0.6 Move time per unit, in days... Process time per unit, in days.... Wait time per order before start of production, in days. Queue time per unit, in days Inspection time per unit, in days. 0.5 0.5 0.4 9.6 8.7 5.3 4.7 3.6 3.6 2.6 1.7 0.7 0.7 0.4 0.3 As part of its continuous improvement program, the company is planning to move toward a JIT purchasing and production system. Required: 1. For each month, compute the following operating performance measures: The throughput time, or velocity of production. b. The manufacturing cycle efficiency (MCE). The delivery cycle time. a. с. 2. Using the performance measures given in the problem and those you computed in (1) above, identify whether the trend over the four months is generally favorable, generally unfavorable, or mixed. apparently require improvement and how might they be improved? 3. Refer to the move time, process time, and so forth, given above for What areas month 4. Assume that in month 5 the move time, process time, and so forth. are the same as for month 4, except that through the implementation of JIT, the company is able to completely eliminate the during production. Compute the new throughput time and MCE. a. queue time b. Assume that in month 6 the move time, process time, and so forth, are the same as for 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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Problem (Measures of Internal Business Process Performance)
Melody Fabrications, Ltd., of Dasmariñas, Cavite, has recently begun a
continuous improvement campaign in conjunction with a move toward JIT
production and purchasing. Management has developed new performance
measures as part of this campaign. The following operating data have been
gathered over the last four months:
200
Chapter 7
Month
4
1
Throughput time, or velocity...
Manufacturing cycle efficiency...
Delivery cycle time.
Percentage of on-time
deliveries...
78%
85%
73%
72%
10,550
10,490
10,540
10,570
Total sales (units).
Management would like to know the company's throughput time,
manufacturing cycle efficiency, and delivery cycle time.
compute these measures have been gathered and appear below:
The data to
Month
4
1
0.5
0.5
0.4
0.5
Move time per unit, in days...
Process time per unit, in days....
Wait time per order before start of
production, in days.
Queue time per unit, in days
Inspection time per unit, in days....
0.6
0.5
0.5
0.4
9.6
8.7
5.3
4.7
3.6
3.6
2.6
1.7
0.7
0.7
0.4
0.3
As part of its continuous improvement program, the company is planning to
move toward a JIT purchasing and production system.
Required:
1. For each month, compute the following operating performance measures:
The throughput time, or velocity of production.
b. The manufacturing cycle efficiency (MCE).
The delivery cycle time.
a.
c.
2. Using the performance measures given in the problem and those you
computed in (1) above, identify whether the trend over the four months is
generally favorable, generally unfavorable, or mixed.
apparently require improvement and how might they be improved?
3. Refer to the move time, process time, and so forth, given above for
What areas
month 4.
Assume that in month 5 the move time, process time, and so for,
are the same as for month 4, except that through the implementation
of JIT, the company is able to completely eliminate the queue time
during production. Compute the new throughput time and MCE.
a.
b. Assume that in month 6.the move time, process time, and so forth, are
the same as for 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.
324
Transcribed Image Text:Problem (Measures of Internal Business Process Performance) Melody Fabrications, Ltd., of Dasmariñas, Cavite, has recently begun a continuous improvement campaign in conjunction with a move toward JIT production and purchasing. Management has developed new performance measures as part of this campaign. The following operating data have been gathered over the last four months: 200 Chapter 7 Month 4 1 Throughput time, or velocity... Manufacturing cycle efficiency... Delivery cycle time. Percentage of on-time deliveries... 78% 85% 73% 72% 10,550 10,490 10,540 10,570 Total sales (units). Management would like to know the company's throughput time, manufacturing cycle efficiency, and delivery cycle time. compute these measures have been gathered and appear below: The data to Month 4 1 0.5 0.5 0.4 0.5 Move time per unit, in days... Process time per unit, in days.... Wait time per order before start of production, in days. Queue time per unit, in days Inspection time per unit, in days.... 0.6 0.5 0.5 0.4 9.6 8.7 5.3 4.7 3.6 3.6 2.6 1.7 0.7 0.7 0.4 0.3 As part of its continuous improvement program, the company is planning to move toward a JIT purchasing and production system. Required: 1. For each month, compute the following operating performance measures: The throughput time, or velocity of production. b. The manufacturing cycle efficiency (MCE). The delivery cycle time. a. c. 2. Using the performance measures given in the problem and those you computed in (1) above, identify whether the trend over the four months is generally favorable, generally unfavorable, or mixed. apparently require improvement and how might they be improved? 3. Refer to the move time, process time, and so forth, given above for What areas month 4. Assume that in month 5 the move time, process time, and so for, are the same as for month 4, except that through the implementation of JIT, the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE. a. b. Assume that in month 6.the move time, process time, and so forth, are the same as for 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. 324
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