LA firm is interested in cutting the amount of time between when a customer plac
ID: 2493253 • Letter: L
Question
LA firm 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
0.3 Days
Process Time
3.2 Days
Wait Time
12.0 Days
Queue Time
1.0 Days
Move Time
0.5 Days
Required:
1. Compute the throughput time.
2. Compute the manufacturing cycle efficiency (MCE) for the quarter.
3. What percentage of the throughput time was spent on non-value-added activities?
4. Compute the delivery cycle time.
5. If by using lean production all queue time can be eliminated in production, what will be the new MCE?
Inspection Time
0.3 Days
Process Time
3.2 Days
Wait Time
12.0 Days
Queue Time
1.0 Days
Move Time
0.5 Days
Explanation / Answer
Requirement 1:
Throughput time
= Inspection Time + Process Time + Queue Time + Move Time
= 0.3 + 3.2 + 1 +0.5
= 5
Throughput Time = 5 days
Requirement 2:
Manufacturing Cycle Efficiency
= Value Added Time / Throughput Time
= Process Time / Throughput Time
= 3.2 / 5
= 0.64
Requirement 3:
Percentage of Throughput time spent on non- value – added activities:
Non Value Added Activities = Inspection Time + Wait time + Queue Time + Move Time
= 0.3 + 12 + 1 +0.5
= 13.8 days
Percentage of Throughput time spent on non value added activities
= Non Value Added Activities / Throughput Time
= 13.8 / 5
= 2.76
= 276%
Requirement 4:
Calculation of Delivery Cycle Time:
Delivery Cycle Time = Wait Time + Throughput Time
= 12 + 5
= 17 days
Requirement 5:
New MCE if all queue time can be eliminated
= MCE – queue time
= 5 – 1
= 4 days
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.