Exercise Algo Measures of Internal Business Process Performance L
Management of Mittel Company wants to reduce the elapsed time from when a customer places an order to when it is shipped. It provided the following data for a recent quarter:
tableInspection time, dayWait time from order to start of production daysProcess time, daysMove time, dayQueue time, days
Required:
Compute the throughput time.
Note: Round your answer to decimal place.
Compute the manufacturing cycle efficiency MCE for the quarter.
Note: Round your percentage answer to nearest whole percent.
What percentage of the throughput time was spent in nonvalueadded activities?
Note: Round your percentage answer to nearest whole percent.
Compute the delivery cycle time.
Note: Round your intermediate calculations and final answer to decimal place.
If using Lean Production eliminates all queue time, what will be the new MCE?
Note: Do not round intermediate calculations. Round your percentage answer to decimal place.
table Throughput time,,days Manufacturing cycle efficiency,,
