Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.

Month
1 2 3 4
Throughput time (days) ? ? ? ?
Delivery cycle time (days) ? ? ? ?
Manufacturing cycle efficiency (MCE) ? ? ? ?
Percentage of on-time deliveries 90 % 84 % 81 % 78 %
Total sales (units) 2410 2307 2189 2106

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 2 3 4
Move time per unit 0.9 0.5 0.6 0.6
Process time per unit 3.6 3.4 3.2 3.0
Wait time per order before start of production 18.0 19.7 23.0 24.8
Queue time per unit 4.7 5.5 6.4 7.4
Inspection time per unit 0.6 0.8 0.8 0.6

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 companys 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.

Round to 1 decimal
Throughput Time Delivery Cycle Time Manufacturing Cycle Efficiency (MCE)
Month 1 days days %
Month 2 days days %
Month 3 days days %
Month 4 days days %

(Indicate the effect of each trend by selecting "Favorable" or "Unfavorable" or "None" for no effect (i.e., zero variance).

The Throughput Time measure displays trends
The Delivery cycle timedays measure displays trends
Manufacturing cycle efficiencydays measure displays trends

(Round your intermediate calculations and final answers to 1 decimal place.)

Month 5 Month 6
Throughput time days days
Manufacturing cycle efficiency (MCE) % %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CPA Exam Review 2020 At Least Know This Auditing And Attestation

Authors: At Least Know This

1st Edition

1706038364, 978-1706038368

More Books

Students also viewed these Accounting questions

Question

Brief the importance of span of control and its concepts.

Answered: 1 week ago

Question

What is meant by decentralisation?

Answered: 1 week ago

Question

Identify five strategies to prevent workplace bullying.

Answered: 1 week ago