Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount
ID: 356032 • Letter: M
Question
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)16.8 days 0.7 days Process time Move time Queue time 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 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediate intermediate calculations and final answer to 1 decimal place.) ations. Round your percentage answer to nearest whole percent.) days 1. Throughput time 2. Manufacturing cycle efficiency 3. Non-value-added throughput time 4. Delivery cycle time 5. New manufacturing cycle efficiency days 1 of 6 Next >Explanation / Answer
Answer 1.
Through put time from customer order to shipment = Time from start of inspection to completion.
= Inspection time + Wait Time + Process Time + Move Time
= 0.7 days + 16.8 days + 3.3 days + 0.6 days
= 21.4 days
Answer 2
Manufacturing cycle efficiency % = (Value Added time / Total Time) * 100
Manufacturing cycle efficiency % = (Inspection time + Process Time + Move Time / Total Time) * 100
Manufacturing cycle efficiency % = (0.7 days + 3.3 days + 0.6 days / 25.4 days) * 100
Manufacturing cycle efficiency % = (4.6 days / 25.4 days) * 100
Manufacturing cycle efficiency % = 18 % ....Answer
Answer 3:
Non Value Added throughput Time % = (Total Non Value Added time / Total Time) * 100
Non Value Added throughput Time % = (Wait Time + Queue Time / Total Time) * 100
Non Value Added throughput Time %= 16.8 days +4.0 days / 25.4 days) * 100
Non Value Added throughput Time %= (20.8 days / 25.4 days) * 100
Non Value Added throughput Time %= 82% .....Answer
Answer 4:
Delivery time = Total time from reciept of an ordert o the delivery of the product to customer = Time from start of inspection to shipment.
= Inspection time + Wait Time + Process Time + Move Time + Queue Time
= 0.7 days + 16.8 days + 3.3 days + 0.6 days+ 4.0 days
= 25.4 days
Answer 5 :
New Manufacturing cycle efficiency % = (Value Added time / Total Time) * 100
New Manufacturing cycle efficiency % = (Inspection time + Process Time + Move Time / Total Time) * 100
New Manufacturing cycle efficiency % = (0.7 days + 3.3 days + 0.6 days / 21.4 days) * 100
New Manufacturing cycle efficiency % = (4.6 days / 21.4 days) * 100
New Manufacturing cycle efficiency % = 21 %
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