Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: DaysWait time3.7Inspection time0.2Process time1.3Move time0.8Queue time6.9Required:a. Compute the throughput time.b. Compute the manufacturing cycle efficiency (MCE).c. What percentage of the production time is spent in non-value-added activities?d. Compute the delivery cycle time.
What will be an ideal response?
a. | Throughput time |
= 1.3 days + 0.2 days + 0.8 days + 6.9 days = 9.2 days
b. | MCE = Value-added time (Process time) ÷ Throughput time |
c. | Percentage of time spent on non-value-added activities |
d. | Delivery cycle time = Wait time + Throughput time |
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