Inspection time 0.4 days Wait time (from order to start of production) 16.8 days Process time 2.8 days Move time 1.1 days Queue time 4.3 days   1. Compute the throughput time.  2. Compute the manufacturing cycle efficiency (MCE) for the quarter.  3. What percentage of the throughput time was spent in non–value-added activities? 4. Compute

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 12MCQ: (Appendix 11A) The length of time it takes to produce a unit of output from the time raw materials...
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Inspection time 0.4 days
Wait time (from order to start of production) 16.8 days
Process time 2.8 days
Move time 1.1 days
Queue time 4.3 days

 

1. Compute the throughput time. 

2. Compute the manufacturing cycle efficiency (MCE) for the quarter. 

3. What percentage of the throughput time was spent in non–value-added activities?

4. Compute the delivery cycle time.

5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? 

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