Exercise 11-3 Measures of Internal Business Process Performance [LO3]

Please explain how you arrived at the answers as this is very helpful. Thank you!

Lipex, Ltd., of Birmingham, England, is interested in cutting the amount of time between when a customer places an order and when the order is completed. For the first quarter of the year, the following data were reported:

Inspection time	0.3	days
Process time	2.5	days
Wait time	17.0	days
Queue time	4.2	days
Move time	1.1	days

Required:
1.	Compute the throughput time. (Round your answer to 1 decimal place.)

Throughput time

days

2.	Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your intermediate calculations to 1 decimal place and final answer to 2 decimal places.)

Manufacturing cycle efficiency

3.	What percentage of the throughput time was spent in nonvalue-added activities? (Round your answer to nearest whole percent. Omit the "%" sign in your response.)

Nonvalue-added throughput time

%

4.	Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.)

Delivery cycle time

days

5.	If by using Lean Production all queue time can be eliminated in production, what will be the new MCE? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

New manufacturing cycle efficiency