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Business, 18.03.2020 21:15 Neko1kat

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 0.3 days
Wait time (from order to start of production) 14.0 days
Process time 2.7 days
Move time 1.0 days
Queue time 5.0 days

Required:
1. Compute the throughput time (days).
2. Compute the manufacturing cycle efficiency (MCE) for the quarter (round to nearest percent).
3. What percentage of the throughput time was spent in non-value-added activities?
4. Compute the delivery cycle time (day).
5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE?

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