Problem 11-14 Measures of Internal Business Process Performance [LO11-3) DataSpa
ID: 2529304 • Letter: P
Question
Problem 11-14 Measures of Internal Business Process Performance [LO11-3) DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating Its supp ers 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 Throughput tine (days) Delivery cycle time (day ? Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 75? 70 ? 67? 64? 2770 2651 2515 2420 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 Move time Process time per unit Nait time per order before start of production Queue tine per unit Inspection tine per unit 0-8 0.4 0.5 0.5 3.9 3.73.53.3 per unit 16.0 17.5 21.0 22.6 5.05.9 6.9 B.0 0-4 0.6 0.6 0.4 -a. Compute the throughput time for each month. 1-b. Compute the dellvery cycle time for each month. -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 e minate 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 MC Complete this question by entering your answers in the tabs below Required Required 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. (Round your answers to 1 decimal place.) Show lessA Throughput Delivery Cycle Cycle Efficiency Time Time MC Month 1 Month 2 Month 3 Month4 days days days days days days daysExplanation / Answer
1-a.
Throughput time = Process time + Inspection time + Move time + Queue time
Month 1
Month 2
Month 3
Month 4
Process time
3.9
3.7
3.5
3.3
Inspection time
0.4
0.6
0.6
0.4
Move time
0.8
0.4
0.5
0.5
Queue time
5
5.9
6.9
8
Throughput time
10.1
10.6
11.5
12.2
1-b.
Delivery cycle time = Wait time + Process time + Inspection time + Move time + Queue time
Month 1
Month 2
Month 3
Month 4
Wait time
16
17.5
21
22.6
Add: Throughput time
10.1
10.6
11.5
12.2
Delivery cycle time
26.1
28.1
32.5
34.8
1-c.
Manufacturing Cycle Efficiency (MCE) = Process time/Manufacturing cycle time = Process time/ Process time + Inspection time + Move time + Queue time
Month 1
Month 2
Month 3
Month 4
Process time
3.9
3.7
3.5
3.3
÷Throughput time
10.1
10.6
11.5
12.2
Manufacturing Cycle Efficiency
0.386139
0.349057
0.304348
0.270492
Answer:
Throughput time
Delivery Cycle Time
Manufacturing Cycle
Efficiency (MCE)
Month 1
10.1
days
26.1
days
38.6
%
Month 2
10.6
days
28.1
days
34.9
%
Month 3
11.5
days
32.5
days
30.4
%
Month 4
12.2
days
34.8
days
27.0
%
2.
Month
1
2
3
4
Throughput time
10.1
10.6
11.5
12.2
Delivery cycle time
26.1
28.1
32.5
34.8
Manufacturing Cycle Efficiency
38.6
34.9
30.4
27.0
% of on-time deliveries
75
70
67
64
Total sales (units)
2,770
2,651
2,515
2,420
Throughput time and Delivery cycle time are up-trend in the four months while Manufacturing Cycle Efficiency, % of on-time deliveries, Total sales (units) are down-trend which indicates the performance of the company is decreasing and need to take actions.
3-a.
Month 5
Process time
3.3
Inspection time
0.4
Move time
0.5
Queue time
0
Throughput time
4.2
Month5
Process time
3.3
÷Throughput time
4.2
Manufacturing Cycle Efficiency
78.6 %
3-b.
Month 6
Process time
3.3
Inspection time
0
Move time
0.5
Queue time
0
Throughput time
3.8
Month6
Process time
3.3
÷Throughput time
3.8
Manufacturing Cycle Efficiency
86.8 %
Month 1
Month 2
Month 3
Month 4
Process time
3.9
3.7
3.5
3.3
Inspection time
0.4
0.6
0.6
0.4
Move time
0.8
0.4
0.5
0.5
Queue time
5
5.9
6.9
8
Throughput time
10.1
10.6
11.5
12.2