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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: Month 1 2
DataSpan, Incorporated, implemented Lean Production and would like to redesign its performance measures accordingly. It has provided the following data sets: Month 1 2 3 4 Percentage of on-time deliveries 92% Total sales (units) 2,060 87% 1,972 84% 1,871 81% 1,800 Average per Month (in days) 1 2 3 4 Move time per unit 0.7 0.4 0.5 0.5 Process time per unit 3.0 2.8 2.7 2.5 Wait time per order before start of production Queue time per unit 23.0 25.2 28.0 30.3 4.2 4.7 5.3 6.0 Inspection time per unit 0.9 1.1 1.1 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 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.
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