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DataSpan, Incorporated, implemented Lean Production and would like to redesign its performance measures accordingly. It has provided the following data sets: Percentage of on-time deliveries Total sales (units) 85% 2,180 Month 3 2 77% 80% 2,087 1,980 74% 1,905 Average per Month (in days)

DataSpan, Incorporated, implemented Lean Production and would like to redesign its performance measures accordingly. It has provided the following data sets: Percentage of on-time deliveries Total sales (units) 85% 2,180 Month 3 2 77% 80% 2,087 1,980 74% 1,905 Average per Month (in days)

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 3CE: Ross Company implemented a quality improvement program and tracked the following for the five years:...
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DataSpan, Incorporated, implemented Lean Production and would like to redesign its performance measures accordingly. It has provided the following data sets: Percentage of on-time deliveries Total sales (units) Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit Required 1 Required 2 Month 1 Month 2 Month 3 Month 4 2 85% 80% 2,180 2,087 Required 3 Month Complete this question by entering your answers in the tabs below. Throughput Time days days days days 3 77% 1,980 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. Note: Round your answers to 1 decimal place. Delivery Cycle Time days days days days < Required 1 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. 2. Evaluate the company's performance over the last four months. 3-a. Refer to the data for month 4. Assume in month 5 the company uses Lean Production to completely eliminate the queue time, and all else remains the same as month 4. Compute the new throughput time and MCE. 3-b. Refer to the data for month 4. Assume in month 6 the company eliminates all queue time and inspection time, and all else remains the same as month 4. Compute the new throughput time and MCE. 4 1,905 Average per Month (in days) 1 2 0.8 3.1 24.0 4.7 0.5 74% 0.5 2.9 26.3 5.3 0.6 Manufacturing Cycle Efficiency (MCE) % % % % 3 0.6 2.8 29.0 6.0 0.6 Required 2 > 0.6 2.6 31.4 6.8 0.5 Show less A
Transcribed Image Text:DataSpan, Incorporated, implemented Lean Production and would like to redesign its performance measures accordingly. It has provided the following data sets: Percentage of on-time deliveries Total sales (units) Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit Required 1 Required 2 Month 1 Month 2 Month 3 Month 4 2 85% 80% 2,180 2,087 Required 3 Month Complete this question by entering your answers in the tabs below. Throughput Time days days days days 3 77% 1,980 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. Note: Round your answers to 1 decimal place. Delivery Cycle Time days days days days < Required 1 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. 2. Evaluate the company's performance over the last four months. 3-a. Refer to the data for month 4. Assume in month 5 the company uses Lean Production to completely eliminate the queue time, and all else remains the same as month 4. Compute the new throughput time and MCE. 3-b. Refer to the data for month 4. Assume in month 6 the company eliminates all queue time and inspection time, and all else remains the same as month 4. Compute the new throughput time and MCE. 4 1,905 Average per Month (in days) 1 2 0.8 3.1 24.0 4.7 0.5 74% 0.5 2.9 26.3 5.3 0.6 Manufacturing Cycle Efficiency (MCE) % % % % 3 0.6 2.8 29.0 6.0 0.6 Required 2 > 0.6 2.6 31.4 6.8 0.5 Show less A
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