Pardun Corporations management keeps track of the time it ta

Pardun 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: Wait time Inspection time Process time Move time Queue time Days 14.8 0.2 2.95 0.6 3.1 Required: a. Compute the throughput time.(Enter your answer rounded to 1 decimal places.) Throughput time days b. Compute the manufacturing cycle efficiency (MCE). (Enter your answer rounded to 2 decimal places.) Manufacturing cycle efficiency (MCE)

Solution

Facts of the Question:

Wait time = 14.8 days

Inspection time = 0.2 days

Process Time = 2.95 days

Move time = 0.6 days

Queue time= 3.1 days

a] Throughput time = Inspection time + Process Time + Move time + Queue time

Throughput time = 0.2+2.95+0.6+3.1 = 6.85 days

b] Manufacturing cycle efficiency (MCE) = Process Time/ Throughput time

Manufacturing cycle efficiency (MCE) = 2.95/6.85 = 0.43

c] Percentage of time spent on non-value added activities = 1- Manufacturing cycle efficiency

Percentage of time spent on non-value added activities = 1-0.43 = 0.57 or 57%

d] Delivery Time = Wait time + Throughput time = 14.8 + 6.85 = 21.65 days