(1)
Throughput time = process time + inspection time + move time + queue time
= 3.2 + 0.7 + 0.7 + 4
= 8.6 days
(2)
manufacturing cycle efficiency = process time/Throughput time
= 3.2/8.6
= 37%
(3)
time spent on value added activities = 37%
time spent on non-value added activities = 100% - 37% = 63%
(4)
delivery cycle time = wait time + throughput time
= 15.2 + 8.6
= 23.8 days
(5)
new manufacturing cycle efficiency = process time/Throughput time
= 3.2/(8.6 - 4)
= 3.2/4.6
= 70%
Exercise 11-3 Measures of Internal Business Process Performance [LO11-3] Management of Mittel Rhein AG of Köln,...
Management of Mittel Rhein AG of Köln, 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: Management of Mittel Rhein AG of Köln, 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...
EXERCISE 11–3 Measures of Internal Business Process Performance [LO11–3] Guided Example 11-3 Management of Mittel Rhein AG of Köln, 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: Compute the throughput time. Compute the manufacturing cycle efficiency (MCE) for the quarter. What percentage of the throughput time was spent in non–value-added activities?...
Management of Mittel Rhein AG of Köln, 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 time 0.7 days Wait time (from order to start of production) 16.5 days Process time 3.1 days Move time 1.1 days Queue time 3.7 days Required: 1. Compute the throughput time. (Round your answer to...
Management of Mittel Rhein AG of Köln, 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 time Wait time (from order to start of production) Process time Move time Queue time 0.5 days 16.4 days 3.0 days 0.7 days 3.7 days Required: 1. Compute the throughput time. (Round your answer to...
Management of Mittel Rhein AG of Köln, 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 t ime Wait time (from order to start of production) Process time 0.6 days 16.9 days 3.2 days 0.7 days 4.4 days Move time Queue time Required: 1. Compute the throughput time. (Round your answer...
Management of Mittel Rhein AG of Köln, 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 time Wait time (from order to start of production) Process time Move time Queue time 0.3 days 16.7 days 3.0 days 1.1 days 4.3 days Required: 1. Compute the throughput time. (Round your answer to...
Management of Mittel Rhein AG of Köln, 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 time Wait time (from order to start of production) Process time Move time Queue time 0.6 days 16.5 days 2.7 days 1.3 days 4.1 days Required: 1. Compute the throughput time. (Round your answer to...
Management of Mittel Rhein AG of Köln, 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 time Wait time (from order to start of production) 0.4 days 16.0 days 2.9 days 0.6 days 3.6 days Process time Move time Queue time Required: 1. Compute the throughput time. (Round your answer to...
Management of Mittel Rhein AG of Köln, 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 time Wait time (from order tostart of production) Process time Move time 0.2 day 17.0 days 3.2 days 0.5 day 3.7 days Queue time Required: 1.Compute the throughput time. (Round your answer to 1 decimal...
Management of Mittel Rhein AG of Köln, 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 time 0.7 days Wait time (from order to start of production) 16.6 days Process time 2.9 days Move time 0.8 days Queue time 4.3 days Required: 1. Compute the throughput time. (Round your answer to...