Question

Management of Mittel Rhein AG of Koln, 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: e.3 days 16.9 days Inspection time Wait time (from order to start of production) Process time Move time 2.8 days 1.3 days 3.7 days Queue time 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 pe 4. Compute the delvery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during productlon Is ellminated, what will be the new MCE? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place.) 1 Throughput time 2. Manufacturing cycle efficiency 8.1 days 34 6 3 Non-value-added throughput time 25.0 days 4 Delivery cycle time 5 New manufacturing cycle efficiency %

Answer 1

3) Non - value added throughput time: 66%

Explanation:

If the Manufacturing Cycle Efficiency  is 34%,

then 34% of the throughput time was spent in value-added activities

Consequently, the other 66% ( 100 -34) of the throughput time was spent in non-value-added activities.

5) New Manufacturing Cycle Efficiency:

If all queue time is eliminated, then the throughput time drops to only 4.4 days (0.3 + 2.8 + 1.3).

The MCE becomes:

= Value Added time ÷ throughput time

= 2.8 ÷ 4.4

= 63.6%