Ashley tCezto.mheducation.com/hm.tpx velue: 5.00 points Management of Mittel Rhe
ID: 2519899 • Letter: A
Question
Ashley tCezto.mheducation.com/hm.tpx velue: 5.00 points 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 Wait time (from order to start of production) Process time Move time Queue time 0.3 days 14.0 days 2.7 days 1.0 days 5.0 days Required 1. Compute the throughput time. ughput time days 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.)Explanation / Answer
Answer:-
(1) Computation of Throughput Time:-
Throughput Time = Inspection Time + Process Time + Move Time + Queue Time
= 0.3 days + 2.7 days + 1.0 days + 5.0 days
= 9.0 days
(2) Computation of Manufactuirng Cycle Efficiency(MCE) for the Quarter :-
MCE = Process Time / ThroughPut Time
= 2.7 days / 9.0 days
= 30%
(3) Computation of Percentage of Througput Time Spent on Non Value added activites :-
= 100 % - MCE %
= 100 % - 30 %
= 70 %
(4) Computation of Delievery Cycle Time:-
= Wait Time + throughput Cycle Time
= 14.0 days + 9.0 days
= 23.0 days
(5) If by using Lean Production all queue time during production is eliminated then New MCE is as follows:-
Revised Throughput Time = Process Time + Inspection Time + Move Time
= 2.7 days + 0.3 days + 1.0 days
= 4.0 days
Process Time = 2.7 days
therefore :- New MCE = Process Time / Revised Throuput Time
= 2.7 days / 4.0 days
= 67.50 %
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