DataSpan. Ino.. automated its plant at the start of the ourrent year and installed a exible manufaotu ring system. The oompany is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been enoountered. inotuding problems relating to performanoe measurement. After muoh study. the oompany has decided to use the perfon'nanoe measures below. and it has gathered data relating to these measures for the rst four months of operations. Mmth 1 2 3 4 Throughput time {days} '1" '1" "r\" "r\" Delivery cycle time {days} 1" 1" '? '? Manufaomring oyote etoienoy {MICE} '1" '1" '? \"P Percentage of on-time deliveries T301: T401: T001: 00% Total sales (units) 10.450 10.400 10.400 10.540 l Management has asked for your help in oomputing throughput time. delivery oyote time. and MICE. The following average times have been logged over the last four months: Ave Month in 1 2 3 4 Move time per unit 0.? 0.5 0.4 0.4 Prooess time per unit 0.4 0.4 0.? 0.0 Wait time per order before start of pro-d uotion 0.3 0.0 5.0 4.0 Queue time per unit 3.0 4.0 2.6 1.5 Inspection time per unit 0.0 0.4 0.? 0.0 ' \"HI-III" u. 1-H. Cmputa than throughput time for Each month. [Round your answers to 1 dacimal place.) 1b. Compute the manufanluring cycle Efciency {MICE} for Each month. [Round your percentage answer: to 1 decimal place [I.a., (1.1234 shuuld ha cumidamd an 12.3%.\": 'lo. Compute the deliyery cycle time for each month. {Round your answers to 1 decimal place.) 3H. 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 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 MGE. (Rou nd your answers to 1 decimal place.) Throughput time -- - Menufecturi ng cycle efciency {MGE} 3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time. process time. and so forth. are again the same as in month 4. except. that the company:r is able to completer eliminate both the queue time during production and the inspection time. Compute the new throughput time and MGE. [Round your answers to 1 decimal place.) -- Manufactunng cycle efciency {mos} -m Selected sales and operating data for three divisions of different structural engineering rms are given as fellows: \".mmh D"'enB 0'\" G Sales $5,500,000 $ 9,500,000 $3,600,000 Average eperating assets 511100.000 $4,150,000 $1,?20,000 Net epereting ineeme $ 253.000 $ 01?.000 $ 150.100 Minimum required rate at return 15.00% 112005 12.00% Required: '1. Centpute the return on investment {RBI} for each division using the fennule stated in terms at margin and tummrer. (Reund your answers to 2 decimal places} 2. Compute the residual income {loss} for each division. [Loss amounts should be indicated by a minus sign. Round your "Required rate cf return" to 2 decimal places.) _I_I_I aaa _I_I_I _I_I_I _I_I_I III 3. Assume that each division is presented with an investment opportunity that would yield a 1TH: rate of retum. a. if performance is being rnaasured by ROI. wl'iich divisicn or divisions will probany accept or reject the opportunity? \fA family friend has asked your help in analyzing the eperatiens of three anenymeus companies operating in the same service sector industry. Supplyr the missing data in the tabla bale-w: {Less ameunts sheuld be indicated by a minus sign. Reund ycur percentage answers te nearest whole percent] Sales H $ I 43.0% if! Net eperating inceme H H Average aparating assets 14?. Retum an investment {ROI} Minimum required rate at retum: Percentage Detlar amount 8 Residual inceme H 5-\" D 3
