ice (LO10-3]Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer places an orderand when the order is shipped. For the first quarter of operations during the current year the following data were reported:Inspection timeWait time (from order to start of production)0.6 days15.7 days3.3 days1.0 days4.1 daysProcess timeMove timeQueue timeRequired:1. Compute the throughput time. (Round your answer to 1 decimal place.)2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.)3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answer to nearestwhole percent.)4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.)5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentageanswer to 1 decimal place.)1. Throughput time9.0 days37 %2. Manufacturing cycle efficiency3. Non-value-added throughput time63 %4. Delivery cycle timedays5. New manufacturing cycle efficiency%

Computation of the above requirements are as follows:

ice (LO10-5J Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer and when the order is shipped. For the first quarter of operations during the current year the following data were repor Inspection time Wait time (from order to start of production) 0.6 days 15.7 days 3.3 days 1.0 days 4.1 days Process time Move time Queue time Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest who 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answe whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your answer to 1 decimal place.) 1. Throughput time 9.0 days 2. Manufacturing cycle efficiency 37 %

ice (LO10-5J Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer and when the order is shipped. For the first quarter of operations during the current year the following data were repor Inspection time Wait time (from order to start of production) 0.6 days 15.7 days 3.3 days 1.0 days 4.1 days Process time Move time Queue time Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest who 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answe whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your answer to 1 decimal place.) 1. Throughput time 9.0 days 2. Manufacturing cycle efficiency 37 %

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 2CE: Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An...

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