Situation
Dogs R Us wants to review some of its most recent nonfinancial performance measures. Your manager has asked
you to compute key measures that will track customer orders. The following times were recorded per order:
		Days
Wait time		12
Inspection time	0.6
Process time	1.2
Move time	0.4
Queue time	2
Instructions:
Where necessary, carry all computations to two decimal places.
1. Compute the throughput time.			Answer:	4.20	days
2. Compute the manufacturing cycle efficiency.		Answer:	28.57%
3. Compute the delivery cycle time.			Answer:	16.20	days
4. What percentage of production time is spent on non-value added activities?
71.43% of production time is spent on non-value added activities. This takes 100% less the MWCE of 28.57%
Assume the company were able to eliminate queue time through the use of Lean Production.
5. Calculate the new throughput time and manufacturing cycle efficiency.
New throughput time:	2.2	days
New MCE:		54.55%
6. Identify two other ways to improve the manufacturing cycle efficiency.