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:

Compute the throughput time.(Round your answer to 2 decimal places.)

Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage. Omit the "%" sign in your response.)

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.)

Compute the delivery cycle time. (Round your answer to 1 decimal place.)

Days   Wait time 11.4        Inspection time 0.3        Process time 3.25        Move time 1.2        Queue time 3.1     

Explanation / Answer

( a ) Through put time

(b) Manufacturing cycle efficiency(MCE)

MCE = Value added time / throughput time = 3.25 / 7.85 =0.414

where,

Value added time = process time =3.25

(c) Percentage of production time spent in non value activities(%) = 100% -MCE(%) = 100- 41.4% =58.6%

(d) Delivery cycle time = wait time + throughput time = 11.4 +7.85 =19.25 days

Process time 3.25 Add:Inspection time 0.3 Add:Move time 1.2 Add:Queue time 3.1 Throughput time 7.85

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