nt of Mittel Rhein AG of Koln, Germany, would like to reduce the amount of time
ID: 2555531 • Letter: N
Question
nt of Mittel Rhein AG of Koln, Germany, would like to reduce the amount of time between when a customer places an order Managemen 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 tine Queue tine 0.7 days 16.8 days 3.3 days 0.6 days 4.0 days Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answer to nearest whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediate colculations. Round your percentage answer to nearest whole percent.) 3 Answer is complete but not entirely correct. 86days 3801% 62 196 254 days 72 00196 1 Throughput time 2 Manufacturing cycle efficiency 3Non-value-added throughput time 4 Delivery cycle time New manufacturing cycle efficiencyExplanation / Answer
SOLUTION:
Throughput time = Process time + Inspection time + Move time + Queue time
= 3.3 + 0.7 + 0.6 + 4.0 = 8.6 days
MCE = Value-added time / Throughput time = 3.3/8.6 = 0.38 or 38%
Non–value-added throughput time = 1-0.38 = 0.62 or 62%
Delivery cycle time = Wait time + Throughput time = 16.8 + 8.6 = 25.4 days
MCE = Value-added time / Throughput time = 3.3/(3.3 + 0.7 + 0.6) = 72%
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