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Management of Mittel Company 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 time 0.2 days
Wait time (from order to start of production) 17.0 days
Process time 3.1 days
Move time 0.9 days
Queue time 4.2 days

Required:
a. Compute the throughput time. (Round your answer to 1 decimal place.)
b. Compute the manufacturing cycle efficiency (MCE) for the quarter.
c. What percentage of the throughput time was spent in non–value-added activities?
d. Compute the delivery cycle time.
e. If by using Lean Production all queue time during production is eliminated, what will be the new MCE?

Answer :

tutorAnne

Answer:1.

a)Through put time =8.4days

b)The manufacturing cycle efficiency  =36.9%

c)percentage of the through put time spent on non–value-added activities =63.1%

d)Delivery time =25.4days

e) The  New  manufacturing cycle efficiency =73.8%

Explanation:

1. The through put time is given as

Process time + Inspection time + Move time+Queue time

Through put time=3.1 + 0.2 + 0.9 + 4.2

Through put time=8.4days

2. The manufacturing cycle efficiency

,is given as

Process  ÷Through put time

manufacturing cycle efficiency

, =3.1/8.4=0.369=36.9%

3. The manufacturing cycle efficiency

, is 36.9%

Thus percentage of the throughput time spent in non–value-added activities is  given as

1 - 36.9% = 63.1%

4.The delivery cycle time is calculated as

Wait time + through put time

Delivery cycle =17.0  + 8.4 = 25.4 days

5.  The New manufacturing cycle efficiency  is calculated as

Process ÷through put time

But the new through put time =8.4 -4.2=4.2

New  manufacturing cycle efficiency  =3.1 / 4.2 = 0.7380

=73.8%

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