3. Pardun Corporation\'s management keeps track of the time it takes to process

Question

3. Pardun Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order Da Wait time Inspection time Process time Move time Queue time 174 0.2 2.20 0.2 3.5 Required: a. Compute the throughput time (Round your answer to 2 decimal places.) Throughput time da b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage.) MCE c. What percentage of the production time is spent in non-value-added activities? (Do not round intermediate calculations. Round your answer to nearest whole percentage.) Percentage of the production time

Explanation / Answer

Answer to Part a)
Throughput Time = Process Time + Inspection Time + Move Time + Queue Time
Throughput Time = 2.20 + 0.20 + 0.20 + 3.50
Throughput Time = 6.10 days

Answer to Part b)
Manufacturing Cycle Efficiency = Value-Added Time / Throughput Time
Manufacturing Cycle Efficiency = 2.20 / 6.10
Manufacturing Cycle Efficiency = 36%

Answer to Part c)
Percentage of the Production Time = 100 – Manufacturing Cycle Efficiency
Percentage of the Production Time = 100 – 36
Percentage of the Production Time = 64%

Answer to Part d)
Delivery Cycle Time = Wait Time + Throughput Time
Delivery Cycle Time = 17.4 + 6.1
Delivery Cycle Time = 23.5 days

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