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Soundcloud Apple Your stream on SoundCloud Twitter ESPN Instagram Disney Apple Bing Google Yahoo raw-Hill Campus-11953 ACC212 Managerial Juniper Design Ltd. Of Chapter 11 Homework Assignment 3 Exercise 11-3 Measures of Internal Business Process Performance [L011-31 2.14 oints 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 tine Wait time (from order to start of production)17.1 days Process time Move time Queue time 0.6 days eBook 3.2 days 1.4 days 3.9 days Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufactu uring 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 Print 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.) References days 1. Throughput time 2. Manufacturing cycle efficiency 3. |Non-value-added throughput time 4. Delivery cycle time 5. New manufacturing cycle efficiency days

Explanation / Answer

1) Throughput time : 9.1 days

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

= 3.2 days + 0.6 days + 1.4 days + 3.9 days

= 9.1 days

2) Manufacturing cycle efficiency : 35%

Working: MCE = Value added/ Throughput time = 3.2 / 9.1 days = 0.35

3) Non-value-added throughput time : 65%

Working: If the MCE is 35%, then 35% of the throughput time was spent in value-added activities. Thus the balancing 65% of the throughput time was spent in non-value-added activities.

4) Delivery cycle time: 26.2 days

Working: Delivery cycle time = Wait time + Throughput time = 17.1 days + 9.1 days = 26.2 days

5) New manufacturing cycle efficiency: 62%

Working: MCE = Value added/ Throughput time = 3.2 / (3.2 days + 0.6 days + 1.4 days ) = 0.62

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