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 0.3 days 14.0 days 2.7 days 1.0 days 5.0 days Required 1. Compute the throughput time Throughput time 9 days 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent Manufacturing cycle efficien 30 % 3. What percentage of the throughput time was spent in non-value-added activities? Non-value-added throughput time 701% 4. Compute the delivery cycle time Delivery cycle time 23 days 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to nearest whole percent.) New manufacturing cycle efficienc

Explanation / Answer

Answer to Question No. 5

Manufacturing Cycle Efficiency = Value Added Time / Throughput time
Throughput time = Process Time + Inspection Time + Move Time
Throughput time = 2.7 days + 0.3 days + 1.0 days
Throughput time = 4.0 days

Manufacturing Cycle Efficiency = 2.7 /4.0
Manufacturing Cycle Efficiency = 0.675 or 68%

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