Jaster Corporation\'s management keeps track of the time it takes to process ord

Question

Jaster 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 19.8 0.4 2.45 0.3 3.3 Required: a. Compute the throughput time. (Round your answer to 2 decimal places.) Throughput time days b. Compute the manufacturing cycle fficiency (MCE). (Do not round intermediate calculations Round your answer to 2 decimal places.) MCE c. What percentage of the production time is spent in non-value-added activities? (Do not round intermediate calculations. Round your answer to nearest whole percentage. Omit the "%" sign in your response.) Percentage of the production time d. Compute the delivery cycle time. (Round your answer to 1 decimal place.) Delivery cycle time days

Explanation / Answer

Jaster Corporation Details Days Wait Time                                    19.80 Inspection Time                                      0.40 Process Time                                    2.45 Move Time                                    0.30 Queue Time                                    3.30 Total                                  26.25 a. Throuhput Time=   Throughput time = Process time + Inspection time + move time + Queue time Throuhput Time= 2.45+0.40+0.30+3.30                           =                                    6.45 Days So Through put Time is   6.45 days b Manfacturing Cycle Efficiency = Value-added time / Throughput time Value added time =process time =2.45 days Through put time = 6.45 days Manufacturing Cycle Effciency= 2.45/6.45= 37.98% 37.98% So Manufacturing Cycle Efficiency = 37.98% c Non Value added activities time = Inspection time +Move Time+Queue Time                                                   = 0.40+0.30+3.30                                                    =                                    4.00 days Through put time = 6.45 days Non value added time as % of production Time =   62% (assume throughput time =production time) d Delivery Cycle time= Through put Time + Wait time                                                 = 6.45+19.80                                                  =                                  26.25 days So Delivery cycle Time is 26.25 days

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