Question
MARTIN CORPORATION The MARTIN Corporation is interested in cutting the amount of time between when a customer places an order and when the order is
MARTIN CORPORATION
The MARTIN Corporation 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 0.5 days
Process time 2.8 days
Wait time 16.0 days
Queue time 4.0 days
Move time 0.7 days
REQUIRED:
What is the difference between delivery time and throughput time? What elements of throughput time are value-added and what elements are non-value added?
Compute the throughput time.
What does a manufacturing cycle efficiency (MCE) of less than 1 mean? How would you interpret an MCE of 0.40?
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 all queue time can be eliminated in production, what will be the new MCE?
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Financial Accounting A Management Perspective
Authors: Nelson Macwan
1st Edition
6206142191, 978-6206142195
