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EXERCISE 11-3 Measures of Internal Business Process Performance (L011-3] Management of Mittel Rhein AG of Kln, Germany, would like to reduce the amount of time

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EXERCISE 11-3 Measures of Internal Business Process Performance (L011-3] Management of Mittel Rhein AG of Kln, 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: Inspection time ...... Wait time (from order to start of production) Process time Move time ....... Queue time ........ 0.3 days 14.0 days 2.7 days 1.0 days 5.0 days "equired: Compute the throughput time. Compute the manufacturing cycle efficiency (MCE) for the quarter. What percentage of the throughput time was spent in non-value-added activities? Compute the delivery cycle time. If by using Lean Production all queue time during production is eliminated, what will be the new MCE

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