Exercise 12-3 (Static) Measures of Internal Business Process Performance (L012-3) 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 Wait tine (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 Required: 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answers to the nearest whole percent.) 4. Compute the delivery cycle time. 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to 1 decimal place.) Required: 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answers to the nearest whole percent.) 4. Compute the delivery cycle time. 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to 1 decimal place.) 1. Throughput time 2. Manufacturing cycle efficiency 3. Non-value-added throughput time 4. Delivery cycle time 5. New manufacturing cycle officiency days % % days % Exercise 12-5 (Static) Overall Equipment Effectiveness (L012-3] Jefferson Company's demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. Actual run time this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including detecta 4,900 minutes 7,000 minutes 3.8 units per minute 4.0 units per minute 15,827 units 10,620 units Required: 1. Compute the utilization rate (Round your answer to 2 decimal places.) 2. Compute the efficiency rate (Round your answer to 2 decimal places.) 3. Compute the quality rate. (Round your answer to 2 decimal places.) 4. Compute the overall equipment effectiveness (OEE) (Do not round Intermediate calculations. Round your final answer to 3 decimal places.) Jefferson Company's demand for its only product exceeas its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. Actual run time this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects 4,900 minutes 7,000 minutes 3.8 units per minute 4.0 units per minute 15,827 units 18,620 units Required: 1. Compute the utilization rate. (Round your answer to 2 decimal places.) 2. Compute the efficiency rate. (Round your answer to 2 decimal places.) 3. Compute the quality rate. (Round your answer to 2 decimal places.) 4. Compute the overall equipment effectiveness (OEE) (Do not round intermediate calculations, Round your final answer to 3 decimal places.) Utilization rate Efficiency rate Quality rate Overall equipment effectiveness
