Required: Which segment is more efficient in terms of manufacturing efficiency? How can management improve its waiting time? To answer this question, compute for the following: 1. Throughput time 2. Manufacturing Cycle Efficiency (MCE) 3. Delivery Time

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section: Chapter Questions
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Required: Which segment is more efficient in terms of manufacturing efficiency? How can management
improve its waiting time?


To answer this question, compute for the following:
1. Throughput time
2. Manufacturing Cycle Efficiency (MCE)
3. Delivery Time

Case 3: Operational Performance Measures
DEF Company is manufacturing two (2) products, A and B. These products are tailored to fit the customers'
needs. According to its market research, many customer complaints have been received due to its notoriously
long waiting time. The management of DEF Company has decided to keep track of the time to complete a
customer order. Based on the recent quarter, the following average times were recorded per order per product:
Product A
Product B
Wait time
10
7
Inspection time
1
0.5
Process time
3
2
Move time
1
0.5
Queue time
Different business segments handle each product. Segment A handles Product A, while Segment B handles
Product B. The management is evaluating the efficiency of each segment.
Transcribed Image Text:Case 3: Operational Performance Measures DEF Company is manufacturing two (2) products, A and B. These products are tailored to fit the customers' needs. According to its market research, many customer complaints have been received due to its notoriously long waiting time. The management of DEF Company has decided to keep track of the time to complete a customer order. Based on the recent quarter, the following average times were recorded per order per product: Product A Product B Wait time 10 7 Inspection time 1 0.5 Process time 3 2 Move time 1 0.5 Queue time Different business segments handle each product. Segment A handles Product A, while Segment B handles Product B. The management is evaluating the efficiency of each segment.
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