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Lipex, Ltd., of Birmingham, England, is interested in cutting the amount of time between when a customer places an order and when the order is completed. For the first quarter of the year, the following data were reported: Inspection time 0.5 days Process time 2.6 days Wait time 15.4 days Queue time 3.7 days Move time 1.3 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 intermediate calculations to 1 decimal place and final answer to 2 decimal places.) 3. What percentage of the throughput time was spent in non–value-added activities? 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 can be eliminated in production, what will be the new MCE? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Operation Management, Management Studies

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