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Management of Mittel Rhein AG of Koln, Germany, would like to reduce the amount

ID: 2434553 • Letter: M

Question

Management of Mittel Rhein AG of Koln, Germany, would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported:
Inspection time .0.3
Wait time (from order to start of production) .14.0
Process time .2.7
Move time .1.0
Queue time .5.0

Required:
l. Compute the throughput time.
2. Compute the manufacturing cycle efficiency (MCE) for the quarter.
3. What percentage of the throughput time was spent in non-value-added activities?
4. Compute the delivery cycle time.
5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE?

Explanation / Answer

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