Exercise $12-3($Algo$)$ Measures of Internal Business Process Performance $[$L$012-3]$

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:

Inspection time

$2\mathrm{.}6$ days

Queue time $1\mathrm{.}3$ days

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.$)$

$\backslash$table$[[1.$ Throughput time,$9\mathrm{.}0,$days$],[2.$ Manufacturing cycle efficiency,$36,\%$