Question

1. Compute the throughput time. 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 answers to the nearest whole percent.) 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.)

Answer 1

1. Throughput time.

This is the length of time it takes to transform a raw material into finished goods.

= Inspection time + Process time + Move time + Queue time

= 0.7 + 2.8 + 1.3 + 4.1

= 8.9 days

2. Manufacturing Cycle Efficiency:

= Value added time / Throughput time * 100%

= 2.8 / 8.9 * 100%

= 31%

3. Percentage of time spent on none valuable activities:

= 1 - Manufacturing cycle efficiency

= 1 - 31%

= 69%

4. Delivery Cycle time:

= Wait time + Throughput time

= 16.2 + 8.9

= 25.1 days

5. New MCE.

Queue time is eliminated:

= 8.9 - 4.1

New Throughput time = 4.8 days

MCE = 2.8 / 4.8

= 58%