Management of Mittel Company wants to reduce the elapsed time from when a customer places an order to when it is shipped. It provided the following data for a recent quarter: Inspection time Wait time (from order to start of production) Process time Move time 0.4 days 16.5 days 2.9 days 1.3 days 4.3 days Queue time Required: 1. Compute the throughput time. Note: Round your answer to 1 decimal place. 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. Note: Round your percentage answer to nearest whole percent. 3. What percentage of the throughput time was spent in non-value-added activities? Note: Round your percentage answer to nearest whole percent. 4. Compute the delivery cycle time. Note: Round your intermediate calculations and final answer to 1 decimal place. 5. If using Lean Production eliminates all queue time, what will be the new MCE? Note: Round your percentage answer to 1 decimal place. 1. Throughput time 2. Manufacturing cycle efficiency days % 3. Non-value-added throughput time 4. Delivery cycle time % days 5. New manufacturing cycle efficiency %
Management of Mittel Company wants to reduce the elapsed time from when a customer places an order to when it is shipped. It provided the following data for a recent quarter: Inspection time Wait time (from order to start of production) Process time Move time 0.4 days 16.5 days 2.9 days 1.3 days 4.3 days Queue time Required: 1. Compute the throughput time. Note: Round your answer to 1 decimal place. 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. Note: Round your percentage answer to nearest whole percent. 3. What percentage of the throughput time was spent in non-value-added activities? Note: Round your percentage answer to nearest whole percent. 4. Compute the delivery cycle time. Note: Round your intermediate calculations and final answer to 1 decimal place. 5. If using Lean Production eliminates all queue time, what will be the new MCE? Note: Round your percentage answer to 1 decimal place. 1. Throughput time 2. Manufacturing cycle efficiency days % 3. Non-value-added throughput time 4. Delivery cycle time % days 5. New manufacturing cycle efficiency %
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
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 67P: Refer to the information for Farnsworth Company (p. 139) for the first 10 months of data on...
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