DGT Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times (days) were recorded per order: Wait time 13.9 Inspection time 0.4 Process time 3.2 Move time 0.7 Queue time 2.8 Required: 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.
DGT Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times (days) were recorded per order: Wait time 13.9 Inspection time 0.4 Process time 3.2 Move time 0.7 Queue time 2.8 Required: 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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DGT Corporation's management keeps track of the time it takes to process orders. During the
most recent month, the following average times (days) were recorded per order:
Wait time 13.9
Inspection time 0.4
Process time 3.2
Move time 0.7
Queue time 2.8
Required:
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.
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