Question
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
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 | 0.4 | days |
Process time | 2.5 | days |
Wait time | 15.5 | days |
Queue time | 4.5 | days |
Move time | .5 | days |
Required: | |
1. | Compute the throughput time. (Round your answer to 1 decimal place.) |
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.) |
3. | What percentage of the throughput time was spent in nonvalue-added activities? |
4. | Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) |
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.) |
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