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C ezto.mheducation.com/hm.tpx D Frontier Mail Home 2 MSN E Mail Welcome to Fro D SearchSign inD Verizon MyVerizon 2 D Question 3 (of 9) value: 4.00 points 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 0.4 days Inspection time Wait time (from order to start of production) Process time Move time Queue time 15.6 days 3.1 days 1.4 days 4.0 days Required: 1. Compute the throughput time. (Round your answer to 1 decimal place. hroughput time days 2. Compute the manufacturing cycle eficiency (MCE) for the quarter, (Round your percentage answer to nearest whole percent.) Manufacturing cycle efficiency 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answer to nearest whole percent.) Non-value-added throughput timeExplanation / Answer
1. Computation of Throughput Time
Process Time
3.1
Inspection Time
0.4
Move Time
1.4
Queue Time
4
Throughput Time
8.9 Days
2. Computation of Manufacturing cycle efficiency (MCE) for the quarter
MCE = Value Added time/Throughput time
MCE = 3.1/8.9
MCE
34.83%
3. Computation of Percentage of throughput time was spent in Non Value Added Activities
Here MCE is 30%. Therefore, Percentage of throughput time was spent in Non Value Added Activities will be 70%
4. Computation of Delivery Cycle Time
Delivery Cycle Time = Wait Time + Throughput Time
Delivery Cycle Time = 15.60 + 8.90
Delivery Cycle Time = 24.50 Days
5. Computation of New MCE
Step 1: Computation of Throughput Time
Process Time
3.1
Inspection Time
0.4
Move Time
1.4
Thoughput Time
4.9
MCE = Value Added time/Throughput Time
MCE = 3.1/4.90
MCE
63.27%
1. Computation of Throughput Time
Process Time
3.1
Inspection Time
0.4
Move Time
1.4
Queue Time
4
Throughput Time
8.9 Days
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