Question
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
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 time0.3daysWait time (from order to start of production)16.3daysProcess time2.7daysMove time1.2daysQueue time4.2days
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 percentage answer to nearest whole percent.)
3. What percentage of the throughput time was spent in non-value-added activities?(Round your percentage answer to nearest whole percent.)
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 during production is eliminated, what will be the new MCE?(Do not round intermediate calculations. Round your percentage answer to 1 decimal place.)
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