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Exercise 1 2 - 3 ( Algo ) Measures of Internal Business Process Performance [ LO 1 2 - 3 ] Management of Mittel Company

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Exercise 12-3(Algo) Measures of Internal Business Process Performance [LO12-3]
Management of Mittel Company 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:
\table[[Inspection time,0.3 days],[Wait time (from order to start of production),16.5 days],[Process time,3.0 days],[Move time,1.4 days],[Queue time,3.8 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 intermediate 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? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place.)
\table[[1. Throughput time,,days],[2. Manufacturing cycle efficiency,,%
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