Dataspan inc automated its plant at the start of the

Assignment Help Accounting Basics

Reference no: EM13568257

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	77%	78%	83%	90%
Total sales (units)	10,570	10,400	10,430	10,400

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:

	Average per Month (in days)
	1	2	3	4
Move time per unit	0.7	0.3	0.5	0.5
Process time per unit	0.4	0.5	0.5	0.3
Wait time per order before start of production	9.0	8.0	5.0	4.0
Queue time per unit	3.0	3.0	2.0	1.0
Inspection time per unit	0.3	0.4	0.4	0.6

Requirement 1:
(a)	Compute the throughput time for each month. (Round your answers to 1 decimal place.)

	1	2	3	4
Total throughput time	_________	_________	_________	_________

(b)	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)	_________%	_________%	_________%	_________%

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

	1	2	3	4
Total delivery cycle time	_________	_________	_________	_________

Requirement 2:
Refer to the move time, process time, and so forth, given above for month 4.

(a)

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. (Round your answers to 1 decimal place. Omit the "%" sign in your response.)

Total throughput time _________
Manufacturing cycle efficiency (MCE) _________%

(b)

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. (Round your answers to 1 decimal place. Omit the "%" sign in your response.)

Total throughput time _________
Manufacturing cycle efficiency (MCE) _________%

Reference no: EM13568257

Questions Cloud

If you can negotiate a nominal annual interest rate of 10 : you are considering buying a new car. the sticker price is 15000 and you have 2000 to put toward a down payment. if you

In the articles superman and me and the only daughter the : hii will have an exam on monday and professor will ask three prompt and i will have to write an essay according to the

Ebersoll mining has 4 million in sales its roe is 10 and : ebersoll mining has 4 million in sales its roe is 10 and its total assets turnover is 2.6x. the company is 80 equity

South penn trucking is financing a new truck with a loan of : south penn trucking is financing a new truck with a loan of 10000 to be repaid in 5 annual end-of-year installments of

Dataspan inc automated its plant at the start of the : dataspan inc. automated its plant at the start of the current year and installed a flexible manufacturing system. the

Which of the following lists correctly ranks investments : over the past 75 years we have observed that investments with higher average annual returns also tend to have the

Investment abd will pay you 7000 for each of the next 9 : investment abd will pay you 7000 for each of the next 9 years whereas investment xyz will pay you 9000 for the next 6

Motorcade company has three service departments s1 s2 and : motorcade company has three service departments s1 s2 and s3 and two production departments p1 and p2. the following

Your task is to provide and answer a topic of discussion : movie-for greater gloryin the movie for greater glory we can perceive in the background the mexican revolution. this

User Account

All Pages