Pardun Corporation\'s management keeps track of the time it takes to process ord
ID: 2394449 • Letter: P
Question
Pardun Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Wait time Inspection time Process time Move time Queue time Days 14.8 0.2 2.95 0.6 3.1 Required: a. Compute the throughput time.(Enter your answer rounded to 1 decimal places.) Throughput time days b. Compute the manufacturing cycle efficiency (MCE). (Enter your answer rounded to 2 decimal places.) Manufacturing cycle efficiency (MCE)Explanation / Answer
Facts of the Question:
Wait time = 14.8 days
Inspection time = 0.2 days
Process Time = 2.95 days
Move time = 0.6 days
Queue time= 3.1 days
a] Throughput time = Inspection time + Process Time + Move time + Queue time
Throughput time = 0.2+2.95+0.6+3.1 = 6.85 days
b] Manufacturing cycle efficiency (MCE) = Process Time/ Throughput time
Manufacturing cycle efficiency (MCE) = 2.95/6.85 = 0.43
c] Percentage of time spent on non-value added activities = 1- Manufacturing cycle efficiency
Percentage of time spent on non-value added activities = 1-0.43 = 0.57 or 57%
d] Delivery Time = Wait time + Throughput time = 14.8 + 6.85 = 21.65 days
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