Problem 11-16 (30 minutes) 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 Move time 0.5 0.5 0.4 0.5 Queue time 3.6 3.6 2.6 1.7 Total throughput time 5.4 5.3 3.9 2.9 Manufacturing cycle efficiency (MCE): Process time ÷ Throughput time 11.1% 9.4% 12.8% 13.8% Delivery cycle time in days: Wait time 9.6 8.7 5.3 4.7 Total throughput time 5.4 5.3 3.9 2.9 Total delivery cycle time 15.0 14.0 9.2 7.6 2. The general is favorable in all of the performance measures except for total sales. On-time delivery is up, process time is down, inspection time is down, move time is basically unchanged, queue time is down, manufacturing cycle efficiency is up, and the delivery cycle time is down. Even though the company has improved its operations, it has not yet increased its sales. This may have happened because management attention has been focused on the factory—working to improve operations. However, it may be time now to exploit these improvements to go after more sales—perhaps by increased product promotion and better marketing strategies. It will ultimately be necessary to increase sales so as to translate the operational improvements into more profits. Problem 11-16 (continued) 3. a. and b. 5 6 Throughput time in days:
Problem 11-16 (30 minutes) 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 Move time 0.5 0.5 0.4 0.5 Queue time 3.6 3.6 2.6 1.7 Total throughput time 5.4 5.3 3.9 2.9 Manufacturing cycle efficiency (MCE): Process time ÷ Throughput time 11.1% 9.4% 12.8% 13.8% Delivery cycle time in days: Wait time 9.6 8.7 5.3 4.7 Total throughput time 5.4 5.3 3.9 2.9 Total delivery cycle time 15.0 14.0 9.2 7.6 2. The general is favorable in all of the performance measures except for total sales. On-time delivery is up, process time is down, inspection time is down, move time is basically unchanged, queue time is down, manufacturing cycle efficiency is up, and the delivery cycle time is down. Even though the company has improved its operations, it has not yet increased its sales. This may have happened because management attention has been focused on the factory—working to improve operations. However, it may be time now to exploit these improvements to go after more sales—perhaps by increased product promotion and better marketing strategies. It will ultimately be necessary to increase sales so as to translate the operational improvements into more profits. Problem 11-16 (continued) 3. a. and b. 5 6 Throughput time in days:
14e_gnb_ch11_sm.docx