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DataSpan, Incorporated, automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its
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 1 2 3 4 ? ? ? ? ? ? ? ? ? ? ? ? 91% 86% 82% 78% 3,030 2,900 2,752 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 2 3 4 Move time per unit 0.9 0.7 0.9 0.9 Process time per unit 2.9 2.8 2.7 2.6 Wait time per order before start of production 19.0 20.8 23.0 24.8 Queue time per unit 4.4 5.1 5.9 6.8 Inspection time per unit 0.7 0.9 0.9 0.7 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 % The Throughput Time measure displays The Delivery cycle time measure displays Manufacturing cycle efficiency measure displays trends trends trends Throughput time Manufacturing cycle efficiency (MCE) Month 5 Month 6 days % days %
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