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Pritchard Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers
Pritchard 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 last two months of operations. Month March April Throughput time (days) ? ? Delivery cycle time (days) ? ? Manufacturing cycle efficiency (MCE) ? ? Percentage of on-time deliveries 91% 86% Total sales (units) 3,210 3,072 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 two months: Month March April Move time per unit 0,30 0,40 Process time per unit 2,10 2,00 Wait time per order before start of production 9,00 11,50 Queue time per unit 2.80 4,40 Inspection time per unit 0,80 0,70 Required: 1. For each month, compute the following: a. The throughput time. b. The MCE. c. The delivery cycle time. 2. Assume that in May, the move time, process time, and so forth, are the same as in April, except that through the use of Lean Production the company is able to completely eliminate the queue time during production and inspection time. Compute the new throughput time and MCE
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