EXERCISE $9-3$ Measures of Internal Business Process Performance $[$LO$9-3]$

Management of Mittel Rhein AG of K$$ln$,$ 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:

Required:

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?