Exercise 12-3 (Algo) Measures of Internal Business Process Performance (LO12-3] Management of Mittel Company 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 Wait time (from order to start of production) 0.4 days 16.6 days 2.8 days 1.4 days Process time Move time Queue time 3.7 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 activitles? (Round your percentage answer to nearest whole percent.) 4. Compute the delvery cycle time. (Round your Intermedlate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is elminated, what will be the new MCE? (Do not round Intermedlat calculations. Round your percentage answer to 1 decimal place.) 1. Throughput time 2. Manufacturing cycle efficiency 3. Non-value-added throughput time days 4. Delivery cycle time 5. New manufacturing cycle efficiency days

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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.)

Exercise 12-3 (Algo) Measures of Internal Business Process Performance [LO12-3]
Management of Mittel Company 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 operatlons during the current year the following data were reported:
Inspection time
Wait time (from order to start of production)
0.4 days
16.6 days
Process time
2.8 days
1.4 days
3.7 days
Move time
Queue time
Requlred:
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 activitles? (Round your percentage answer to nearest
whole percent.)
4. Compute the dellvery cycle time. (Round your Intermedlate 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 Intermedlate
calculations. Round your percentage answer to 1 decimal place.)
1. Throughput time
2. Manufacturing cycle efficiency
days
3. Non-value-added throughput time
4. Delivery cycle time
5. New manufacturing cycle efficiency
days
Transcribed Image Text:Exercise 12-3 (Algo) Measures of Internal Business Process Performance [LO12-3] Management of Mittel Company 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 operatlons during the current year the following data were reported: Inspection time Wait time (from order to start of production) 0.4 days 16.6 days Process time 2.8 days 1.4 days 3.7 days Move time Queue time Requlred: 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 activitles? (Round your percentage answer to nearest whole percent.) 4. Compute the dellvery cycle time. (Round your Intermedlate 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 Intermedlate calculations. Round your percentage answer to 1 decimal place.) 1. Throughput time 2. Manufacturing cycle efficiency days 3. Non-value-added throughput time 4. Delivery cycle time 5. New manufacturing cycle efficiency days
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