Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Days Wait time 15.3 Inspection time 0.2 Process time 1.4 Move time 1.3 Queue time 2.5 Required: a. Compute the throughput time. (Round your answer to 1 decimal places.) b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage.) c. What percentage of the production time is spent in non-value-added activities? (Do not round intermediate calculations. Round your answer to nearest whole percentage.) d. Compute the delivery cycle time. (Round your answer to 1 decimal place.)
(a)-Throughput time
Throughput time = Inspection time + Process time + Move time + Queue time
= 0.2 days + 1.4 days + 1.3 days + 2.5 days
= 5.4 days
(b)-Manufacturing cycle efficiency (MCE)
Manufacturing cycle efficiency (MCE) = [Process time / Throughput time] x 100
= [1.4 Days / 5.4 Days] x 100
= 26%
(c)-Percentage of the production time is spent in non-value-added activities
Percentage of time spent on non-value-added activities = 100% – MCE%
= 100% – 26%
= 74%
(d)-Delivery cycle time.
Delivery cycle time = Wait time + Throughput time
= 15.3 Days + 5.4 Days
= 20.7 Days
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