Asked by Jordan Thornhill on Jun 07, 2024
Verified
Schurz Corporation's management reports that its average delivery cycle time is 26.7 days, its average throughput time is 10.0 days, its manufacturing cycle efficiency (MCE)is 0.22, its average move time is 0.6 day, and its average queue time is 6.7 days.
Required:
a.What is the wait time?
b.What is the process time?
c.What is the inspection time?
Delivery Cycle Time
The period from when a customer order is received to when the finished product is shipped.
Throughput Time
Throughput Time is the total time taken to produce a product, from the start of production to its completion.
Manufacturing Cycle Efficiency
A measure of the efficiency of the production process, calculated as the ratio of value-added time to total cycle time.
- Determine and explain the concept of throughput time.
- Investigate the link between performance indicators in operations and their financial impacts.
Verified Answer
KM
Kristina MatosJun 12, 2024
Final Answer :
a.Delivery cycle time = Wait time + Throughput time
26.7 days = Wait time + 10.0 days
Wait time = 26.7 days - 10.0 days = 16.7 days
b.MCE = Process time ÷ Throughput time
0.22 = Process time ÷ 10.0 days
Process time = 0.22 × 10.0 days = 2.2 days
c.Throughput time
= Process time + Inspection time + Move time + Queue time
10.0 days = 2.2 days + Inspection time + 0.6 days + 6.7 days
Inspection time = 10.0 days - 2.2 days - 0.6 days - 6.7 days
= 0.5 days
26.7 days = Wait time + 10.0 days
Wait time = 26.7 days - 10.0 days = 16.7 days
b.MCE = Process time ÷ Throughput time
0.22 = Process time ÷ 10.0 days
Process time = 0.22 × 10.0 days = 2.2 days
c.Throughput time
= Process time + Inspection time + Move time + Queue time
10.0 days = 2.2 days + Inspection time + 0.6 days + 6.7 days
Inspection time = 10.0 days - 2.2 days - 0.6 days - 6.7 days
= 0.5 days
Learning Objectives
- Determine and explain the concept of throughput time.
- Investigate the link between performance indicators in operations and their financial impacts.