Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount
ID: 2476668 • 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:
Inspection time 0.3 days Wait time (from order to start of production)
15.3 days Process time
3.3 days Move time 0.9 days
Queue time 3.9 days
Compute the throughput time. (Round your answer to 1 decimal place.)
Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to the nearest whole percentage (i.e., 0.12 should be entered as 12).)
What percentage of the throughput time was spent in non–value-added activities? (Round your answer to the nearest whole percentage (i.e., 0.12 should be entered as 12).)
Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.)
If by using Lean Production all queue time during production is eliminated, what will be the new MCE?(Do not round intermediate calculations. Round your answer to the nearest whole percentage (i.e., 0.12 should be entered as 12).)
Required: 1.
Compute the throughput time. (Round your answer to 1 decimal place.)
Explanation / Answer
1)
Throughput time = Process time + Inspection time + Move time + Queue time
Throughput time = 3.3+0.3+0.9 +3.9 = 8.4 Days
2)
Manufacturing cycle efficiency = Value added ( process time) / Throughput time * 100
Manufacturing cycle efficiency = 3.3 / 8.4 *100 = 39.28%
3)
MCE = 39.28% therefore percentage of the throughput time was spent in non–value-added activities will be = 100-39.28= 60.72%
4)
Delivery cycle time = Wait time + throughput time
Delivery cycle time =15.3 + 8.4 = 23.7 Days
5)
New Throughput time = 8.4 - 3.9 = 4.5 days
MCE = 3.3 / 4.5 = 0.7333 or 73.33%
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