EXERCISE 11-3 Measures of Internal Business Process Performance (L011-3) 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) ...... Process time ..... Move time ......... Queue time 0.3 days 14.0 days 2.7 days 1.0 days 5.0 days Required: 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. 3. What percentage of the throughput time was spent in non-value-added activities? Compute the delivery cycle time. 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE?
Related questions
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 | days |
| Wait time (from order to start of production) | 17.0 | days |
| Process time | 2.6 | days |
| Move time | 0.6 | days |
| Queue time | 3.6 | 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 nonâvalue-added activities? (Round your percentage answer to nearest whole percent.)
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 during production is eliminated, what will be the new MCE? (Do not round intermediate calculations. Round your percentage answer to nearest whole percent.)
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 | 0.5 | days |
| Wait time (from order to start of production) | 16.1 | days |
| Process time | 3.3 | days |
| Move time | 0.6 | days |
| Queue time | 3.8 | 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 nonâvalue-added activities? (Round your percentage answer to nearest whole percent.)
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 during production is eliminated, what will be the new MCE? (Do not round intermediate calculations. Round your percentage answer to nearest whole percent.)
