Lipex, Ltd., of Birmingham, England, is interested in cutting the amount of time
ID: 2424513 • Letter: L
Question
Lipex, Ltd., of Birmingham, England, is interested in cutting the amount of time between when a customer places an order and when the order is completed. For the first quarter of the year, the following data were reported:
Inspection time 0.5 days
Process time 2.8 days wait time 16.0 days
Que time 4.0 days
Move time 0.7 days
Compute the throughput time_____days
Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to 2 decimal places.)
What percentage of the throughput time was spent in non-value-added activities?____%
Compute the delivery cycle time ____days
If by using Lean Production all queue time can be eliminated in production, what will be the new MCE? (Round your answer to 2 decimal places.)_____
What percentage of the throughput time was spent in non-value-added activities?____%
Explanation / Answer
Throughput time = Process Time + Inspection Time + Move Time + Queue Time
= 2.8 +0.5 + 0.7+ 4.0
= 8 Days
Note: Wait time should not be considered for throughput days computation.
Manufacturing cycle efficiency (MCE) = Value added time/ Throughput time
Value added time = Process time
So MCE = 2.8/8
MCE = 0.35 Days
First we need to identify the Vale added time VS Non Value added time
Value added time = Process time
Non Value added time = Inspection Time + Move Time + Queue Time
Non Value added time = 0.5 + 0.7+ 4.0
= 5.2 Days
Percentage =(5.2/8)*100 = 65%
Delivery cycle time = Wait time +Throughput time
= 16+ 8
=24 Days
New manufacturing cycle efficiency =Value-added time / Throughput time
= 2.8/8
= 0.35 Days.
So MCE = 2.8/8
MCE = 0.35 Days
- What percentage of the throughput time was spent in non-value-added activities?____%
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