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Lipex, Ltd., of Birmingham, England, is interested in cutting the amount of time between when a customer places an order and

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Days

Wait Time 15.9
Process Time 2.7
Inspection Time 0.5
Move Time 1.1
Queue Time 3.7
1. Throughput time
Throughput Time = 0.5+2.7+3.7+1.1 = 8 days
2. Manufacturing Cycle efficiency = Value Added Time / Throughput Time
Value added time = Process Time
Hence,
Manufacturing Cycle efficiency = 2.7 / 8 = 0.34    
3. Percentage of time spent on non value added services
(1 - Manufacturing Cycle Efficiency) * 100%
66%
4. Delivery Cycle Time
It is the summation of wait, process, inspection, move and queue time
Delivery Cycle Time = 15.9+2.7+.5+1.1+3.7 = 23.9 days
5. Due to Lean manufacturing, Queue is completely eliminated
New Throughput time = 0.5 + 2.7 + 1.1 = 4.3 days
Value added time = Process Time
Hence,
Manufacturing Cycle efficiency = 2.7 / 4.3 = 0.63

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