The president has read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how they are computed. You have been asked to assist the company, and you have gathered the following data relating to these measures: Average per Month (in days) 1 2 3 4 Wait time per order before start of production Inspection time per unit Process time per unit Queue time per unit Move time per unit 9.0 11.5 12.0 14.0 0.8 0.7 0.7 0.7 2.1 2.0 1.9 1.8 2.8 4.4 6.0 7.0 0.3 0.4 0.4 0.5 Required: 1-a. Compute the throughput time for each month. 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. 3-a. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE 3-b. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production Compute the new throughput time and MCE. Complete this question by entering your answers in the tabs below. Required 1 Required 3

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The president has read in industry journals that throughput time, MCE, and delivery cycle time are important measures of
performance, but no one is sure how they are computed. You have been asked to assist the company, and you have gathered
the following data relating to these measures:
Average per Month (in
days)
1
2
3
4
Wait time per order before start of
production
Inspection time per unit
Process time per unit
Queue time per unit
Move time per unit
9.0 11.5 12.0 14.0
0.8 0.7 0.7 0.7
2.1 2.0 1.9 1.8
2.8 4.4 6.0 7.0
0.3 0.4
0.4 0.5
Required:
1-a. Compute the throughput time for each month.
1-b. Compute the manufacturing cycle efficiency (MCE) for each month.
1-c. Compute the delivery cycle time for each month.
3-a. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time,
process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time
during production using Lean Production. Compute the new throughput time and MCE
3-b. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time,
process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during
production and the inspection time using Lean Production Compute the new throughput time and MCE.
Complete this question by entering your answers in the tabs below.
Required 1
Required 3
Transcribed Image Text:The president has read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how they are computed. You have been asked to assist the company, and you have gathered the following data relating to these measures: Average per Month (in days) 1 2 3 4 Wait time per order before start of production Inspection time per unit Process time per unit Queue time per unit Move time per unit 9.0 11.5 12.0 14.0 0.8 0.7 0.7 0.7 2.1 2.0 1.9 1.8 2.8 4.4 6.0 7.0 0.3 0.4 0.4 0.5 Required: 1-a. Compute the throughput time for each month. 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. 3-a. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE 3-b. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production Compute the new throughput time and MCE. Complete this question by entering your answers in the tabs below. Required 1 Required 3
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