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 0.2 days
Wait time (from order to start of production) 16.4 days
Process time 3.4 days
Move time 1.2 days
Queue time 3.5 days
Requirement 1:
Compute the throughput time. (Round your answer to 1 decimal place.)
Throughput time 8.3 days
Requirement 2:
Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to 2 decimal places.)
Manufacturing cycle efficiency 0.41
Requirement 3:
What percentage of the throughput time was spent in non-value-added activities? (Round your answer to the nearest whole number. Omit the "%" sign in your response.)
Throughput time 59 %
Requirement 4:
Compute the delivery cycle time.(Round your answer to 1 decimal place.)
Delivery cycle time 24.7 days
Requirement 5:
If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your answer to 3 decimal places.)
Manufacturing cycle efficiency ??