Question

DataSpan, 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 first four months of operations.

	Month
	1	2	3	4
Throughput time (days)	?	?	?	?
Delivery cycle time (days)	?	?	?	?
Manufacturing cycle efficiency (MCE)	?	?	?	?
Percentage of on-time deliveries	79%	80%	85%	92%
Total sales (units)	10,550	10,450	10,430	10,560

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 days)
	1		2		3		4
Move time per unit	0.5		0.3		0.6		0.7
Process time per unit	0.6		0.5		0.4		0.6
Wait time per order before start of production	9.0		8.0		5.0		4.0
Queue time per unit	3.2		3.8		2.4		1.3
Inspection time per unit	0.8		0.3		0.4		0.5

1-c. Compute the delivery cycle time for each month. (Round your answers to 1 decimal place.)

	Delivery Cycle Time
Month 1		days
Month 2		days
Month 3		days
Month 4		days

Answer 1

Workings

Deliverycycle time= wait time+ throughput time

= Wait time+(process time+ queue time+ inspection time+ move time)

Hence for Month 1

Delivery time= 9+(0.5+0.6+0.8+3.2)

=9+5.1=14.1 days

Throughput time = 5.1 days

Month 2=

8.0+(0.3+0.5+3.8+0.3)=8+4.9= 12.9 days

Throughput = 4.9 days

Month 3=

5.0+(0.6+0.4+2.4+0.4)= 5+3.8 days

Throughput= 3.8days

Month 4=

4+(0.7+0.6+1.3+0.5)=4+3.1=7.1days

Throughput=3.1 days

Computation showing delivery cycle time

Month	Days
Month 1	14.1
Month 2	12.9
Month 3	8.8
Month 4	7.1