Problem 10-14 (Algo) Measures of Internal Business Process Performance (LO10-3) DataSpon, 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 Month 2 3 4 Throughput time (days) ? ? 2 2 Delivery cycle time (days) 2 2 ? 2 Manufacturing cycle efficiency (MCE) 2 > ? Percentage of on-time deliveries 91% 86% 82% 78% Total sales (units) 3030 2900 2252 2649 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 Hove time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit 1 0.9 2.9 19.0 4.4 8.7 Average per Month (in days) 2 3 0.7 0.9 2.8 2.7 20.8 23.0 5.1 5.9 0.9 0.9 4 0.9 2.6 24.8 5.8 0.7 Required: 1a 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 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 3- 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 is able to completely eliminate both the queue time during production and the inspection time Compute the new throughput time and MCE Complete this question by entering your answers in the tabs below. 2. Evaluate the company's performance ovelles 3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month burn 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 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 is able to completely eliminate both the queue time during production and the inspection time Compute the new throughput time and MCE Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 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. (Round your intermediate calculations and final answers to 1 decimal place.) Show less Throughput Time Manufacturing Cycle Efficiency (MCE) % % Month 1 Month 2 Month 3 Month 4 Delivery Cycle Time days days days days days days days 96 days Reg 2 > RU forth, are the same as in month 4, except that queue time during production Compute the new throughput time and MCE 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 forth, are again the same as in month 4. except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Evaluate the company's performance over the last four months. (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 time-days measure displays trends Manufacturing cycle efficiency-days measure displays trends forth, are the same as in month 4. except that through the use of Lean Production the company is able to competery queue time during production Compute the new throughout time and MCE 3-bRefer 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 is able to completely eliminate both the quee time during production and the inspection time Compute the new throughput time and MCE Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 3-a. (Month 5) Refer to the move time, process time, and so forth, Diven 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 3-b. (Month 6) 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 is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE. (Round your intermediate calculations and final answers to 1 decimal place.) Show less Months days % Month 6 days Throughput time Manufacturing cycle efficiency (MCE)
