Question

Astro Clothing Company wants to reduce the length of time between a customer placing an online order and when that order is actually shipped. Astro Clothing proivdes the following data from operations:

Inspection time	0.6	days
Wait time (from order to start of production)	15.5	days
Process time	3.3	days
Move time	1.0	days
Queue time	3.8	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?

Answer 1

1. Throughput Time = Process time + Inspection Time + Move Time + Queue Time
Throughput Time = 3.3 days + 0.6 days + 1.0 days + 3.8 days = 8.7 days
2. Value Added Time = Process Time = 3.3 days
MCE = Value Added Time / Throughput Time = 3.3/8.7 = 0.3793 = 37.93%
3. Percentage of the throughput time was spent in non–value-added activities = 100-37.93 = 62.07%
4. Delivery Cycle time = wait Time + Throughput Time = 15.5+8.7 = 24.2 days
5. New Throughput Time = Process time + Inspection Time + Move Time = 3.3 days + 0.6 days + 1.0 days = 4.9 days
New MCE = Value Added Time / New Throughput Time = 3.3/4.9 = 0.6735 = 67.35%