E111 Time allowed: 20 minutes Management of Mittel Rhein AG of Kln, Germany, would like to reduce

E11–1 Time allowed: 20 minutes 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:

Required 1 Compute the throughput time, or velocity of production.
2 Compute the manufacturing cycle efficiency (MCE) for the quarter.
3 What percentage of the throughput time was spent in non-value-added activities?
4 Compute the delivery cycle time.

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Days 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