Management of Mittel Rhein AG of Koln, Germany, would like to reduce the amount

Question

Management of Mittel Rhein AG of Koln, Germany, would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported Inspection tine Wait tine (from order to start of production) Process tine Move time Queue tine e.7 days 16.8 days 3.3 days 0.6 days 4.0 days Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2 Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answer to nearest whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediate colculations. Round your percentage answer to nearest whole percent.) Answer is complete but not entirely correct. 21.43 days 1801% 820196 254 days 210 0 % 1Throughput time 2 Manufacturing cycle efficiency Non-value-added throughput time 4 Delivery cycle time New manufacturing cydle

Explanation / Answer

1 Throughput Time 8.6 days 2 Manufacturing Cycle Efficiency 38 % 3 Non- Value added Throughput Time 62 % 4 Delivery Cycle Time 25.4 days 5 New Manufacturing Cycle Efficiency 72 % Working Notes : 1 Throughput Time = Process time + Inspection time + Move time + Queue time (3.3 + 0.7 + 0.6 + 4.0) = 8.6 days 2 Manufacturing Cycle Efficiency = value added time / Throughput time ( 3.3 / 8.6 ) = 38% 3 Non- Value added Throughput Time The Percentage is 62 % because the MCE is 38 %, then 38 % of throughput time was spent in value-added activities. 4 Delivery Cycle Time = Wait time + Throughput time ( 16.8 + 8.6 ) = 25.4 days 5 New Manufacturing Cycle Efficiency = value added time / Throughput time ( 3.3 / *4.6 ) = 72% *New Throughput Time = Process time + Inspection time + Move time (3.3 + 0.7 + 0.6) = 4.6 days

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