Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount
ID: 2460271 • Letter: M
Question
Management of Mittel Rhein AG of Köln, 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:
Management of Mittel Rhein AG of Köln, 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:
Explanation / Answer
Answer: 1
Throughput time = Process time + Inspection time+ Move time + Queue time
Throughput time = 2.8 + 0.3+ 1.2 + 3.9 = 8.2 days
Answer: 2
MCE = value added time/ Throughput time
MCE = 2.8/8.2 = 0.3414 = 34%
Answer:3
Since the MCE is 34% which means that 34% of the throughput time was spent in value added activities. Therefore, remaining 66% (100%-34%) was spent in non- value added activities.
Answer:4
Delivery cycle time = Wait time + throughput time
Delivery cycle time = 16.8 + 8.2 = 25 days
Answer:5
New MCE= value added time/ throughput time
= 2.8/(2.8+1.2+0.3)
= 2.8/4.3
=0.6511 = 65.11%
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