Question

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 0.3 days Wait time (from order to start of production) 16.6 days Process time 2.8 days Move time 1.0 days Queue time 4.2 days
1. Compute the throughput time.
2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to 2 decimal places.)
3. What percentage of the throughput time was spent in non–value-added activities? (Enter your answer as a percentage (i.e., 0.12 should be entered as 12).)
4. Compute the delivery cycle time.
5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to 1 decimal place (i.e., 0.123 should be entered as 12.3).)

Answer 1

Answer:

1. Throughput time = Process time + Inspection time + Move time + Queue time

Throughput time = 2.8 + 0.3 + 1 + 4.2

Throughput time = 8.3 days

2. Manufacturing cycle efficiency = Value added time/Throughput time

Manufacturing cycle efficiency = 2.8/8.3

Manufacturing cycle efficiency = 0.3373493976

Manufacturing cycle efficiency = 0.34

3. Percentage of the throughput time spent in non-value-added activities:

= 1 - 0.34

= 0.66

= 66%

4. Delivery cycle time = Wait time + Throughput time

Delivery cycle time = 16.6 + 8.3

Delivery cycle time = 24.9

Delivery cycle time = 25 days

5. New throughput time = Process time + Inspection time + Move time + Queue time

New throughput time = 2.8 + 0.3 + 1

New throughput time = 4.1

Manufacturing cycle efficiency = Value added time/Throughput time

Manufacturing cycle efficiency = 2.8/4.1

Manufacturing cycle efficiency = 0.6829268292682927

Manufacturing cycle efficiency = 68.30%