Question

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 0.6 days
Wait time (from order to start of production) 15.8 days
Process time 2.8 days
Move time 1.3 days
Queue time 3.9 days


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 answer to the nearest whole percentage (i.e., 0.12 should be entered as 12).)

Answer 1

1. Throughput time is 8.6days

2. Manufacturing cycle efficiency (MCE) for the quarter is 32.

Step-by-step explanation:

1. Throughput time is made up of inspection time, queuing time, process time and moving time. The sum of these gives 8,6days

2. Manufacturing cycle efficiency (MCE) is the value added time expressed as a percentage of throughput time. Normally, the value added time is the process time. Thus, MCE=Value added time/Throughput time