Question

Exercise 12-3 Measures of Internal Business Process Performance [LO12-3]

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 | 0.5 | day |

Wait time (from order tostart of production) | 16.4 | days |

Process time | 3.2 | days |

Move time | 0.5 | day |

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 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 nearest whole
percent.)**

Answer #1

Answer:- 1)- Throughput Time = Process time + Inspection time + Move time + Queue time

=3.2 days+ 0.5 days+ 0.5 days+ 3.9 days

= 8.1 days

2)-Manufacturing cycle efficiency (MCE)= Value added time/ Throughput time

=(3.2 days/8.1 days)*100 = 40%

Where:-

Value added time =Process time

3)- The percentage of throughput time was spent in non-value-added activities= 1- Manufacturing cycle efficiency

= 1.00-0.40

=0.60 or 60%

4)- Delivery cycle time = Wait time + Throughput time

= 16.4 days+ 8.1 days

= 24.5 days

5)- New Manufacturing cycle efficiency (MCE)= 76%

Explanation- New Throughput Time = Process Time + Inspection Time + Move Time

= 3.2 days+0.5 days+ 0.5 days

= 4.2 days

New Manufacturing cycle efficiency (MCE)= Value added time/ New Throughput

Time

= 3.2 days/4.2 days

= 76%

Exercise 11-3 Measures of Internal Business Process Performance
[LO11-3]
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
0.5
days
Wait time (from order to start of production)
15.9
days
Process time
2.9
days
Move time
0.8
days
Queue time
3.9
days
Required:...

Exercise 10-3 Measures of Internal Business Process Performance
[LO10-3] 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 0.2 days Wait time (from order to start
of production) 17.1 days Process time 3.2 days Move time 0.9 days
Queue time 3.9 days
Required:...

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
0.5
days
Wait time (from order to start
of production)
16.2
days
Process time
3.2
days
Move time
1.5
days
Queue time
4.0
days
Required:
1. Compute the throughput time. (Round your answer 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
0.5
days
Wait time (from order to start of production)
15.9
days
Process time
2.7
days
Move time
1.2
days
Queue time
3.5
days
Required:
1. Compute the throughput time. (Round your answer 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
0.4
days
Wait time (from order to start of production)
17.0
days
Process time
3.1
days
Move time
1.1
days
Queue time
4.2
days
Required:
1.
Compute the throughput time. (Round your answer 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
0.2
days
Wait time (from
order to start of production)
15.4
days
Process
time
3.3
days
Move time
1.3
days
Queue time
4.1
days
Required:
1. Compute the throughput time. (Round your answer 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 0.8 days Wait time (from order to start of
production) 15.3 days Process time 3.3 days Move time 1.5 days
Queue time 4.4 days Required: 1. Compute the throughput time.
(Round your answer 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
2.9
days
Move time
0.8
days
Queue time
3.6
days
Required:
1. Compute the throughput time. (Round your answer 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
0.3
days
Wait time (from order to start of production)
16.7
days
Process time
3.0
days
Move time
1.5
days
Queue time
3.7
days
Required:
1. Compute the throughput time. (Round your answer 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
0.8
days
Wait time (from
order to start of production)
15.2
days
Process
time
3.1
days
Move time
0.9
days
Queue time
3.5
days
Required:
1. Compute the throughput time. (Round your answer to...

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