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

ID: 2559411 • Letter: M

Question

Management of Mittel Rhein AG of Köln, 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 time Wait time (from order to start of production) Process time ove tie Queue time 0. 4 days 15. 6 day:s 2. 6 days 0. 7 days 3. 7 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 calculations. Round your percentage answer to nearest whole percent.) 1. Throughput time 2.Manufacturing cycle efficiency 3. Non-value-added throughput time 4. Delivery cycle time 5.|New manufacturing cycle efficiency days days

Explanation / Answer

Ans. 1 Throughput time   = Inspection time + Process time + Move time + Queue time 0.4 + 2.6 + 0.7 + 3.7 7.4 Ans.2 MCE = Value added time / Throughput time * 100 2.6 / 7.4 * 100 35% *Value added time = Process time Ans. 3 Non-value-added throughput time = (100% - 35.14%) 65% OR (0.4 + 0.7 + 3.7) / 7.4 *100 4.8 / 7.4 *100 65% Ans.4 Delivery cycle time = Wait time + Throughput time 15.6 + 4.4 20 days Ans.5 New manufacturing cycle efficiency =   Value added time /New Throughput time 2.6 / 3.7 * 100 70% *New throughput time =   Inspection time + Process time + Move time 0.4 + 2.6 + 0.7 3.7

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