Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 1 0 - 3 ( Algo ) Measures of Internal Business Process Performance [ LO 1 0 - 3 ] Management of Mittel Rhein

Exercise 10-3(Algo) Measures of Internal Business Process Performance [LO10-3]
Management of Mittel Rhein AG of Kln, Germany, would llke 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:
\table[[Inspection time,0.6 days],[Wait time (from order to start of production),16.6 days],[Process time,2.8 days],[Move time,1.4 days],[Queue time,3.5 days]]
Required:
Compute the throughput time. (Round your answer to 1 decimal place.)
Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.)
What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answer to nearest whole percent.)
Compute the delivery cycle time. (Round your Intermedlate calculations and final answer to 1 decimal place.)
If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to 1 decimal place.)
\table[[1. Throughput time,days],[2. Manufacturing cycle efficiency,96],[3. Non-value-added throughput time,%
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions