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MacIntyre Fabrications, Ltd., of Aberdeen, Scotland, has recently begun a continuous improvement campaign in conjunction with a move toward Lean Production. Management has developed new performance measures as part of this campaign. The following operating data have been gathered over the last four months: |
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Month |
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| 1 | 2 | 3 | 4 | ||
| Throughput time | ? | ? | ? | ? | |
| Manufacturing cycle efficiency | ? | ? | ? | ? | |
| Delivery cycle time | ? | ? | ? | ? | |
| Percentage of on time deliveries | 72% | 73% | 78% | 85% | |
| Total sales (units) | 10,540 | 10,570 | 10,550 | 10,490 | |
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Management would like to know the company’s throughput time, manufacturing cycle efficiency, and delivery cycle time. The data to compute these measures have been gathered and appear below: |
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Month |
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| 1 | 2 | 3 | 4 | ||||||
| Move time per unit, in days | 0.5 | 0.5 | 0.4 | 0.5 | |||||
| Process time per unit, in days | 0.6 | 0.5 | 0.5 | 0.4 | |||||
| Wait time per order before start of production, in days |
9.6 | 8.7 | 5.3 | 4.7 | |||||
| Queue time per unit, in days | 3.6 | 3.6 | 2.6 | 1.7 | |||||
| Inspection time per unit, in days | 0.7 | 0.7 | 0.4 | 0.3 | |||||
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| Required: | |
| 1a. | Compute the throughput time for each month. (Round your answers to 1 decimal place.) |
| 1 | 2 | 3 | 4 | |
| Throughput time | ||||
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| 1b. |
Compute the manufacturing cycle efficiency (MCE) for each month. (Round your answers to 1 decimal place. Omit the “%” sign in your response.) |
| 1 | 2 | 3 | 4 | |
| Manufacturing cycle efficiency (MCE) | % | % | % | % |
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| 1c. | Compute the delivery cycle time for each month. (Round your answers to 1 decimal place.) |
| 1 | 2 | 3 | 4 | |
| Delivery cycle time | ||||
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| 3. | Refer to the move time, process time, and so forth, given for month 4. |
| a. |
Assume that in month 5 the move time, process time, and so forth, are the same as for month 4, except that through the implementation of Lean Production, the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE. (Round your answers to 1 decimal place. Omit the “%” sign in your response.) |
| Throughput time | |
| Manufacturing cycle efficiency (MCE) | % |
| b. |
Assume that in month 6 the move time, process time, and so forth, are the same as for 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 answers to 1 decimal place. Omit the “%” sign in your response.) |
| Throughput time | |
| Manufacturing cycle efficiency (MCE) | % |
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