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 Queue time Required: 1. Compute the throughput time. 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 answers to the nearest whole percent. 4. Compute the delivery cycle time. 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 3. Non-value-added throughput time 4. Delivery cycle time 5. New manufacturing cycle efficiency 0.3 day 14.0 days 2.7 days 1.0 day 5.0 days days % % days %

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 15E: Refer to Exercise 12.14. Suppose that for 20x2, Sanford, Inc., has chosen suppliers that provide...
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Exercise 12-3 (Static) Measures of Internal Business Process Performance [LO12-3]
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
Queue time
Required:
1. Compute the throughput time.
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 answers to the nearest whole percent.
4. Compute the delivery cycle time.
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
3. Non-value-added throughput time
4. Delivery cycle time
5. New manufacturing cycle efficiency
0.3 day
14.0 days
2.7 days
1.0 day
5.0 days
days
%
%
days
%
Transcribed Image Text:Exercise 12-3 (Static) Measures of Internal Business Process Performance [LO12-3] 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 Queue time Required: 1. Compute the throughput time. 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 answers to the nearest whole percent. 4. Compute the delivery cycle time. 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 3. Non-value-added throughput time 4. Delivery cycle time 5. New manufacturing cycle efficiency 0.3 day 14.0 days 2.7 days 1.0 day 5.0 days days % % days %
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