Management of Mittel Rhein AG of Köin, Germany, would ike to reduce the amount o
ID: 2517738 • Letter: M
Question
Management of Mittel Rhein AG of Köin, Germany, would ike to reduce the amount of time betwoon when a cuslomer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported 0.3 days Inspection time Wait time (from order to start of production)16.2 days Process time Move time Queue time 2.8 days 1.4 days 3.8 days Required: 1. Computo the throughput time. (Round your answer to 1 decimal place.) days 2 Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to the nearest whole percentage (i.e 0.12 should be entored as 12).) 3. What percentage of the throughput time was spent in non-value-added activities? (Round your answer to the nearest whole percentage (ie, 0.12 should be entered as 12).) 4, Compute the dellvery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) days MacBook AirExplanation / Answer
Answers to the above questions are:
1. Through Put Time = Process Time + Inspection Time + Move Time + Queue Time
= 2.8 + .3 + 1.4 + 3.8
= 8.3 Days
2. Manufacturing Cycle Efficiency = Value Added Time / Throughput Time
Here only process time represents value added time, so:
= 2.8 / 8.3
= 34%
3. % of Throughput time spent in Non- Value Added Time = 100% - Manufacturing Cycle Efficiency
= 100% - 34% (calculated in point 2)
= 66%
4. Delivery Cycle Time = Wait Time + Throughput Time
= 16.2 + 8.3
= 24.5 days
5. New Through Put Time = Process Time + Inspection Time + Move Time
= 2.8 + .3 + 1.4
= 4.5 days
New Manufacturing Cycle Efficiency = Value Added Time / Throughput Time
= 2.8 / 4.5
= 62%
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