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Lipex, Ltd., of Birmingham, England, is interested in cutting the amount of time

ID: 2453062 • 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

2.6

days

  Wait time

16.5

days

  Queue time

4.0

days

  Move time

1.1

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 intermediate calculations to 1 decimal place and final answer to 2 decimal places.)

Manufacturing cyle efficiency

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:

Explanation / Answer

1. Throughput Time = time for conversion of RM to FG Hence, Throughput Time calculation based on the information provided = 19.6 days (Inspection + Process + Wait) 2. Manufacturing Cycle Efficiency = Value Added Time/Throughput Time Therefore, Manufacturing Cycle Efficiency (MCE) = (Queue + Move Time)/Throughput Time = 26.02%

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