Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount
ID: 2584569 • 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:
A. Compute the throughput time.
B. Compute the manufacturing cycle efficiency (MCE) for the quarter.
C. What percentage of the throughput time was spent in non–value-added activities?
D. Compute the delivery cycle time.
E. If by using Lean Production all queue time during production is eliminated, what will be the new MCE?
Inspection time Wait time (from order tostart of production) Process time Move time Queue time 0.7 day 15.3 days 2.8 days 0.6 day 3.7 daysExplanation / Answer
A. Throughput Time
Throuhhput Time = Process time + Inspection Time + Move Time + Queue Time
= 2.8 Days + 0.7 Days+ 0.6 Days + 3.7 Days
= 7.8 Days
B. manufacturing cycle efficiency (MCE) for the quarter.
manufacturing cycle efficiency (MCE)= Process Time / Throughput time*100
= 2.8 Days / 7.8 Days *100
= 35.90 % manufacturing cycle efficiency
C. percentage of the throughput time was spent in non–value-added activities
percentage of the throughput time was spent in non–value-added activities = 100% - MCE (as calculated above)
= 100% - 35.90%
= 64.10%
D. Delivery Cycle Time.
Delivery Cycle Time = Process time + Inspection Time + Move Time + Queue Time + Waith Time
= 2.8 Days + 0.7 Days+ 0.6 Days + 3.7 Days + 15.3 Days
= 23.1 Days
E. If by using Lean Production all queue time during production is eliminated, what will be the new MCE
New Throuhhput Time = Process time + Inspection Time + Move Time
= 2.8 Days + 0.7 Days+ 0.6 Days
= 4.1 Days
New MCE = Process Time / New Throughput time*100
= 2.8 Days / 4.1 Days *100
= 68.29 %
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