Question
EXERCISE 113 Measures of Internal Business Process PerformanceLO113 Management of Mittel Rhein AG of Kln, Germany, would like to reduce the amount of time between
EXERCISE 113 Measures of Internal Business Process PerformanceLO113
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 | 0.3 days |
| Wait time (from order to start of production) | 14.0 days |
| Process time | 2.7 days |
| Move time | 1.0 days |
| Queue time | 5.0 days |
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Required:
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Compute the throughput time.
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Compute the manufacturing cycle efficiency (MCE) for the quarter.
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What percentage of the throughput time was spent in nonvalue-added activities?
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Compute the delivery cycle time.
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If by using Lean Production all queue time during production is eliminated, what will be the new MCE?
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