Question

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 0.4 days 17.0 days 3.0 days 1.3 days 4.5 days Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) Throughput time days 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to the nearest whole percentage (i.e., 0.12 should be entered as 12).) Manufacturing cycle efficiency 3. What percentage of the throughput time was spent in non-value-added activities? (Round your answer to the nearest whole percentage (i.e., 0.12 should be entered as 12).) Non-value-added throughput time 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) Delivery cycle time days

Answer 1

Ans. 1	Particulars	1
	Move time per unit	1.3
	Process time per unit	3
	Inspection time per unit	0.4
	Queue time	4.5
	Total (Throughput Time)	9.2	DAYS
Ans. 2	Manufacturing cycle efficiency = Process time or value added time / Throughput time * 100
		3.0 / 9.2 * 100
		33%
Ans. 3	Non value added throughput time = 1 - Manufacturing cycle efficiency
		1 - 33%
		67%
Ans. 4	Delivery cycle time = Throughput time + Wait time per order before start of production
		9.2 + 17
		26.2	days
Ans. 5	Move time per unit	1.3
	Process time per unit	3
	Inspection time per unit	0.4
	Total	4.7	days
	MCE (manufacturing cycle efficiency) = Process time / Throughput time * 100
		3.0 / 4.7 * 100
		64%