Question

Simkin Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:

Hours
Wait time 22.2
Process time 6.7
Inspection time 1.7
Move time 4.3
Queue time 6.4
The manufacturing cycle efficiency (MCE) was closest to:

.

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 0.7 days
Wait time (from order to start of production) 15.7 days
Process time 3.4 days
Move time 1.1 days
Queue time 4.2 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 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 nearest 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? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place.)

Answer 1

1. 9.4 days

2. 9.4 days

3. 60%

4. 25.1 days

5. 5.2 days

Step-by-step explanation:

1. The Computation of throughput time is shown below:-

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

= 3.4 + 0.7 + 1.1 + 4.2

= 9.4 days

2. The computation of Manufacturing Cycle Efficiency is given below:-

Manufacturing Cycle Efficiency Formula = Value added time (Process time) ÷ Manufacturing cycle time

Manufacturing cycle time = Process time + Inspection time + Move time + Queue time

= 3.4 + 0.7 + 1.1 + 4.2

= 9.4 days

Now, we will put into formula

So, Manufacturing Cycle Efficiency = 3.4 ÷ 9.4

= 0.4

3. The computation of percentage of the throughput time is shown below:-

= 1 - Manufacturing cycle efficiency

= (1 - 0.4)

= 60%

4. The computation of delivery Cycle Time is shown below:-

Delivery Cycle Time = Wait time + Throughput time

= 15.7 ÷ 9.4

= 25.1 days

5. The calculation of new manufacturing cycle efficiency is shown below:-

New MCE = Process time + Inspection time + Move time

= 3.4+0.7+1.1

= 5.2 days