P12-16
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:
Month
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
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:
Month
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
Required:
1.
For each month, compute the following:
a. The
throughput time.
b. The
manufacturing cycle efficiency (MCE).
c. The
delivery cycle time.
2.
Using the performance measures given in the problem and those you computed in
(1) above, identify whether the trend over the four months is generally
favorable, generally unfavorable, or mixed. What areas apparently require
improvement and how might they be improved?
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.
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.
TUTORIAL PREVIEW
1. a., b., and c.
Month
| ||||
1
|
2
|
3
|
4
| |
Throughput time in days:
| ||||
Process time
|
0.6
|
0.5
|
0.5
|
0.4
|
Inspection time
|
0.7
|
0.7
|
0.4
|
0.3
|
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