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

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: Compute the throughput time. (Round your intermediate calculations to 1 decimal place.) Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your intermediate calculations to 1 decimal place and final answer to 2 decimal places.) What percentage of the throughput time was spent in non-value-added activities? (Round your answer to nearest whole percent.) Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 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 final answer to2 decimal places.)

Explanation / Answer

Ispection Time 0.6 days Wait ime 16.3 days Process Time 3.2 days Move Time 0.8 days Queue Time 4.1 days Ans 5 New manufacturing cycle efficiency Process Time/Throghput time Through put time=.6+3.2+.8 4.6 3.2/(.6+3.2+.8) 0.70 rounded off 70% ans Ans 1 Throughput time Inspection time+Process Time+Queue Time+Move Time 8.7 days Ans 2 Manufacturing cycle efficiency Value Added Time/Throughput time 0.37 0 Ans Value Added Time Non value added time Process Time INspection Time Wait Time Move Time Queue Time Ans 3 Non Value added throughput time 1-Manufcaturing cycle efficiency 1-.37 63% Ans 4 Delivery Cycle Time Wait time +throughput time 25 days

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