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. 3 4 Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) ? ? ? ? ? ? ? 89% 84% 81% 788 3880 3714 3524 3390 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 3 4 Move time per unit Process time per unit 0.6 0.3 0.4 0.4 2.7 2.5 2.4 2.2 Wait time per order before start of production Queue time per unit Inspection time per unit 25.0 27.4 30.0 32.5 4.4 4.9 5.5 6.2 0.7 0.9 0.9 0.7

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 1TIF: Ethics in Action In August, Lannister Company introduced a new performance measurement system in...
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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-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.
Transcribed Image Text: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-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.
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
4
Throughput time (days)
Delivery cycle time (days)
Manufacturing cycle efficiency (MCE)
Percentage of on-time deliveries
Total sales (units)
?
?
?
89%
84%
81%
78%
3880
3714
3524
3390
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)
2
3
4
Move time per unit
Process time per unit
Wait time per order before start of production
Queue time per unit
Inspection time per unit
0.6
0.3
0.4
0.4
2.7
2.5
2.4
2.2
25.0
27.4
30.0
32.5
4.4
4.9
5.5
6.2
0.7
0.9
0.9
0.7
Transcribed Image Text: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 4 Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) ? ? ? 89% 84% 81% 78% 3880 3714 3524 3390 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) 2 3 4 Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit 0.6 0.3 0.4 0.4 2.7 2.5 2.4 2.2 25.0 27.4 30.0 32.5 4.4 4.9 5.5 6.2 0.7 0.9 0.9 0.7
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