Management of Mittel Company 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) 17.0 days
Process time 3.1 days
Move time 0.9 days
Queue time 4.2 days
Required:
a. Compute the throughput time. (Round your answer to 1 decimal place.)
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?
Answers: 2
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