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

ID: 2453067 • 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

3.

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

Non-value-added throughput time

%

4.

Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.)

Delivery cycle time

Days

5.

If by using Lean Production all queue time can be eliminated in production, what will be the new MCE?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

New manufacturing cycle 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 days
Throughput time = Process time + Inspection time + Move time + Queue time
2.6 days + 0.5 days + 1.1 days + 4.0 days = 8.2 days

2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to 2 decimal places.)

Manufacturing cycle efficiency = Value-added time (Process Time) / Throughput time
2.2 days / 8.2 = 0.27

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

Non-value-added throughput time 73%
100% - 0.27 = 73%

4. Compute the delivery cycle time.

Delivery cycle time days
Delivery cycle time = Wait time + Throughput time
16.5 days + 8.2 = 24.7 days

5. 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.)

New manufacturing cycle efficiency =Value-added time / throughout time
2.6 days / 4.2 = 0.619

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