Jaster Corporation\'s management keeps track of the time it takes to process ord

Question

Jaster Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Wait time Inspection time Process time Move time Queue time Days 17.4 0.2 2.20 0.2 3.5 Required a. Compute the throughput time. (Round your answer to 2 decimal places.) Throughput time days b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage. Omit the"%" sign in your response.) MCE c. What percentage of the production time is spent in non-value-added activities? (Do not round intermediate calculations. Round your answer to nearest whole percentage. Omit the "%" sign in your response.)

Explanation / Answer

Answer a. Throughput Time = Process Time + Inspection Time + Move Time + Queue Time Throughput Time = 2.20 + 0.20 + 0.20 + 3.50 Throughput Time = 6.10 Days Answer b. MCE = Value Added Time (process Time) / Throughput Time MCE = 2.20 / 6.10 = 36.07% Answer c. Percentage of the production time is spent in non-value-added activities = 100 - MCE Percentage of the production time is spent in non-value-added activities = 100 - 36.07% = 63.93% Answer d. Delivery Cycle Time = Wait Time + Throughput Time Delivery Cycle Time = 17.40 + 6.10 = 23.50 Days

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