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Compute the throughput time

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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:

Inspection time - 0.7 days

Wait time (from order to start of production) - 16.4 days

Process time - 3.3 days

Move time - 0.8 days

Queue time - 4.0 days

Required:

1. Compute the throughput time.

2. Compute the manufacturing cycle efficiency (MCE) for the quarter.

3. What percentage of the throughput time was spent in non-value-added activities?

4. Compute the delivery cycle time.

5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE?

Reference no: EM131726393

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