Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount
ID: 468388 • 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:
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:
Required: 1. Compute the throughputtime. Round your answer to 1 decimal place.) days 2. Compute the 2. Compute the manufacturing cycle eficiency (MCE) for the quarter.(Round your answer to the nearest whole percentage (ie. 0.12 should be entered as 12)) 3. What peroentage of the throughputtime 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 delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) ime days not round intermediate calculations. Round your answer to the nearest whole percentage (ie 0.12 should be enteredas 12)Explanation / Answer
1) Throughput time = Process time + inspection time + Move time + Queue time
= 3.4 days + 0.3 days + 1.4 days + 3.8 days = 8.9 days
2) Manufacturing Cycle Efficiency (MCE) = Value Added time(Process time) /Throughput time
= 3.4 days/8.9 days = 0.38 = 38%
3) Percentage of time spent on non-value-added activities = 100%-MCE% = 100%-38% = 62%
4)Delivery cycle time = Wait time + Throughput time = 16.7days + 8.9 days = 25.6 days
5) Queue time = 0
Throughput time = Process time + inspection time + Move time + Queue time
= 3.4 days + 0.3 days + 1.4 days + 0 = 5.1 days
Manufacturing Cycle Efficiency (MCE) = Value Added time(Process time) /Throughput time
= 3.4 days/5.1 days = 0.67 =67%
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