Auflegger, Inc., manufactures a product that experiences the following activities (and times):
Hours
Processing (two departments) ...................................... 42.0
Inspecting .............................................................. 2.8
Rework ................................................................. 7.0
Moving (three moves) ............................................... 11.2
Waiting (for the second process) ................................... 33.6
Storage (before delivery to customer) ............................. 43.4
Required:
1. Compute the MCE for this product.
2. A study lists the following root causes of the inefficiencies: poor quality components from suppliers, lack of skilled workers, and plant layout. Suggest a possible cost reduction strategy, expressed as a series of if-then statements that will reduce MCE and lower costs. Finally, prepare a strategy map that illustrates the causal paths. In preparing the map, use only three perspectives: learning and growth, process, and financial.
3. Is MCE a lag or a lead measure? If and when MCE acts as a lag measure, what lead measures would affect it?