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Problem - Measures of Internal Business Process Performance

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

0.3

  Wait time (from order to start of production)

14.0

  Process time

2.7

  Move time

1.0

  Queue time

5.0

Requirement 1: Compute the throughput time.

Requirement 2: Compute the manufacturing cycle efficiency (MCE) for the quarter.

Requirement 3: What percentage of the throughput time was spent in non-value-added activities?

Requirement 4: Compute the delivery cycle time.

Requirement 5: If by using Lean Production all queue time during production is eliminated, what will be the new MCE?

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