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

Question

Schlarbaum 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: Days 13.9 Wait time Inspection time Process time Move time Queue time 3.2 0.7 Required: a. Compute the throughput time. (Round your answer to 1 decimal places.) b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage.) 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.) d. Compute the delivery cycle time. (Round your answer to 1 decimal place.) a. Throughput time b. MCE c. Percentage of non-value-added activities d. Delivery cycle time days days

Explanation / Answer

(a)Compute the throughput time.

Throughput time= Process time + Inspection time + Move time + Queue time

= 3.2 days + 0.4 days + 0.7 days + 2.8 days

= 7.1 days

(b) Compute the manufacturing cycle efficiency (MCE).

MCR = Process time ÷ Throughput time

= 3.2 days ÷ 7.1 days

= 0.45

(c) What percentage of the production time is spent in non-value-added activities?

Percentage of time spent on non-value-added activities

= 100% – MCE%

= 100% – 45%

= 55%

(d) Compute the delivery cycle time.

Delivery cycle time = Wait time + Throughput time

= 13.9 days + 7.1 days

= 21 days

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