Question

Data Screen Corporation is a highly automated manufacturing firm. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor is insignificant in terms of the total cost of production and tends to be fixed, material quality is considered more important than minimizing material cost, and customer satisfaction is the number one priority. As a result, production and delivery performance measures have been chosen to evaluate performance. The following information is considered typical of the time involved to complete and ship orders.

Waiting time:
From order being placed to start of production		15	days
From start of production to completion		14	days
Inspection time		1.9	days
Processing time		3.8	days
Move time		2.9	days

Required:

1. Calculate the manufacturing cycle efficiency. (Round your percentage answer to 1 decimal place. (i.e., 0.123 should be entered as 12.3))

2. Calculate the delivery cycle time. (Round your answer to nearest whole number.)

Answer 1

Ans:

1. Manufacturing cycle efficiency is the processing time or the throughput time calculated as shown below:

Processing Time / (Processing Time + Waiting time from start of production to completion + Move Time + Inspection Time)

= 3.8/ (3.8+14+2.9+1.9)=3.8/22.6

= 16.81%

2. Delivery cycle time is the total time from order receipt to delivery of order.

In current case it is 15+14+1.9+3.8+2.9 =37.60 Days

Hope this helped ! Let me know in case of any queries.