Management of Mittel Rhein AG of Koin. Germany, would like to reduce the amount

Question

Management of Mittel Rhein AG of Koin. 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 Process tine Move tine Queue time 0.7 days 16.8 days 3.4 days .5 days 4.4 days Required: 1 Compute the throughput time (Round your answer to 1 decimal place) 2 Compute the manufacturing cycle efficienc (MCE for the quarter (Round your percentege answer to ne 3. What percentage of the throughput time was spent in non value-added a whole percent 4. C wer to nearest whole percent.) ctivities (Round your percentage answer to nearest ompute the delvery cycle time (Round your intermediate calculations and final answer to 1 decimal place.) uctión all queue tine during production s eliminated. what will be the new McE? (Do not round intermediate lations. Round your percentage onswer to nearest whole percent) 3Answer is complete but not entirely correct. 3. ?tirne y cycle time ew n efficiency | 7400%

Explanation / Answer

New Manufacturing Cycle Efficiency (MCE) = Value added time / Throughput time = 3.4/4.6 = 73.9 = 74%

Value added time = Process time = 3.4 days

Throughput time = Move time + Process time + Queue time + Inspection time = 0.5 + 3.4 + 0 + 0.7 = 4.6 days

Note: The answer should be entered as 74% and not 74.0%.

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