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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 0.2 days
Wait time (from order to start of production) 16.4 days
Process time 3.4 days
Move time 1.2 days
Queue time 3.5 days

Requirement 1:
Compute the throughput time. (Round your answer to 1 decimal place.)

Throughput time 8.3 days

Requirement 2:
Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to 2 decimal places.)

Manufacturing cycle efficiency 0.41

Requirement 3:
What percentage of the throughput time was spent in non-value-added activities? (Round your answer to the nearest whole number. Omit the "%" sign in your response.)

Throughput time 59 %

Requirement 4:
Compute the delivery cycle time.(Round your answer to 1 decimal place.)

Delivery cycle time 24.7 days

Requirement 5:
If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your answer to 3 decimal places.)

Manufacturing cycle efficiency ??

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9974934

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