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

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 Move time Queue time 0.8 days 16.2 days 3.1 days 1.4 days 4.1 days Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) Answer is complete but not entirely correct. t time 21.5 days 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to the nearest whole percentage i.e., 0.12 should be entered as 12).) Answer is complete but not entirely correct. Manufacturing cycle 3. What percentage of the throughput time was spent in non-value-added activities? (Round your answer to the nearest whole percentage(.e., 0.12 should be entered as 12).) Answer is complete but not entirely correct. Non-value-added throughp 23 31% 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) Answer is complete but not entirely correct. Delivery cycle 37.7 days 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 answer to the nearest whole percentage (i.e., 0.12 should be entered as 12).) Answer is complete and correct. w manufacturing cycle 580%

Explanation / Answer

1 Answer :- Calculation of Through put time:-

Throughput Time = Processes Time + Inspection time + Move time + Queue time

= 3.1 days + 0.8 days + 1.4 days + 4.1 days = 9.4 days

2. Calculation of MCE:-

MCE = (Value added time (Process time) ÷ Throughput time)×100

= 3.1 days ÷ 9.4 days = 0.33 ×100 = 33%

3. Calculation of percentage of the throughput time spent in non-value added activities :-

= 100% - MCE% = 100% - 33% = 67%

4. Calculation of Delivery Cycle time :-

Delivery Cyule time = Wait time + Throughput time

= 16.2 days + 9.4 days = 25.6 days

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