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:

Compute the throughput time.(Round your answer to 2 decimal places.)

Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage. Omit the "%" sign in your response.)

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.)

Compute the delivery cycle time. (Round your answer to 1 decimal place.)

Days   Wait time 12.2        Inspection time 0.6        Process time 2.80        Move time 0.8        Queue time 3.9     

Explanation / Answer

Solution:

a.

b.

c.

Total production time = 20.3 days,

non value added time = 17.5 days

Percentage = 17.5 days / 20.3 days * 100

= 86 %

d.

Delivery cycle time = Wait time + throughput time

= 12.2 days + 8.10 days

= 20.3 days

Thoughput time Inspection time 0.6 Add: process time 2.8 Add: move time 0.8 Add: Queue time 3.9 Thoughput time 8.1 days

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