Management of Mittel Rhein AG of Koln, Germany, would like to reduce the amount

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: 6 day 162 days 30 days 08 day 3.5 days Inspection tme Wait time (rom arder tostart o praduction) Mve ti Qucuc timc Required: 1.Compute the throughput time (Round your answer to 1 decimal place.) t time days 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 percent.) tme 4. Compute the delivery cycle time. Round your intermediate calculations and final answer to 1 decimal place.) timc days

Explanation / Answer

Solution:

1. Throughput time = Process time + inspection time + Move time + Queue time

= 3.0 + 0.6 + 0.8 + 3.5

= 7.9 Days

2. Manufacturing cycle time = Process time + inspection time + Move time + Wait time

= 3.0 + 0.6 + 0.8 + 16.2 = 20.6 Days

Manufacturing cycle efficiency = Process time / Manufacturing cycle time

= 3.0 / 20.6

= 14.56 (rounded as 15%)

3. non value added % = (4.9 / 7.9) x100 = 62%

4. Delivery cycle time =Throughput time + wait time

= 7.9 + 16.2

= 24.1

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