**Title: Reducing Production and Delivery Times: A Case Study of Mittel Rhein AG****Introduction:**Mittel Rhein AG of Köln, Germany, is aiming to minimize the time gap between customer orders and the shipping of products. The data provided below outlines the operational metrics for the first quarter of the current year.**Operational Data:**- **Inspection Time:** 0.6 days- **Wait Time (from order to start of production):** 16.9 days- **Process Time:** 2.7 days- **Move Time:** 0.9 days- **Queue Time:** 3.7 days**Tasks:**1. **Compute the Throughput Time:** Calculate the total time taken for the production process. Round your answer to one decimal place.2. **Compute the Manufacturing Cycle Efficiency (MCE) for the Quarter:** Determine the efficiency of the manufacturing process as a percentage. Round your answer to the nearest whole percent.3. **Analyze Non-Value-Added Time:** Assess what percentage of the throughput time was spent on non-value-added activities. Round your answer to the nearest whole percent.4. **Compute the Delivery Cycle Time:** Calculate the time from order placement to delivery, considering intermediate calculations. Round to one decimal place.5. **Estimate Improvement with Lean Production:** If all queue time during production is eliminated through Lean Production, what will be the new Manufacturing Cycle Efficiency? Round your answer to one decimal place.**Table for Completion:**| **Metric** | **Value** ||---------------------------------------|-----------|| 1. Throughput Time | || 2. Manufacturing Cycle Efficiency | || 3. Non-Value-Added Throughput Time | || 4. Delivery Cycle Time | || 5. New Manufacturing Cycle Efficiency | |Fill in the table based on your calculations of the operational metrics to enhance the manufacturing and delivery process efficiency at Mittel Rhein AG.

Manufacturing Cycle Efficiency: It is that time of the company which gets spent on value-added…

Answered: Management of Mittel Rhein AG of Köln,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QUESTION 2 A. In Akhwan Company, operations director Mr Tamad recently realized there had been an increase in products failing during the final quality checks. These checks were carried out in the QC (quality control) laboratory, which tested finished goods products before being released for sale. The product failure rate had risen from 1% to 4% in two years' time which meant an increase of hundreds of items of output a month which were not sold to Akhwan's customers. The failed products had no value to the company once they had failed QC as the rework costs were not economic. Because the increase was gradual, it took a while for Mr Tamad to realize that the failure rate had risen. A thorough review of the main production operation revealed nothing that might explain the increased failure and so attention was focused on the QC laboratory. For some years, the QC laboratory at Ikhwan, managed by Ramly, had been marginalized in the company, with its two staff working in a remote…
a. Consider a company that produces a given article, through a set of operations with the precedence indicated in the table (daily work of 8h). Construct the circulation graph of an in-line deployment (sequential posts) that shows the highest possible efficiency, without considering the single post hypothesis. Operation Op. time Precedences A 1 - B 1,2 A- C 0,6 B D 1,2 C E 0,8 D F 1,4 E G 1,6 F H 0,2 G I 0,6 H J 1,2 I K 1,2 J L 1 K b. Assume that a given improvement proposal involves an investment of $5,000, the hiring of an additional specialized operator paid at $5/hour and an increase in energy consumption by an additional $1/hour. Knowing that the gain per hour with this improvement is $10/hour, determine after what number of working hours the investment becomes viable.
Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory $3,300 Materials inventory on Feb. 28 50% of materials inventory on Jan. 31 Direct materials purchased $12,000 Direct materials used 3 times the direct labor incurred Total manufacturing costs incurred in period $29,400 Total manufacturing costs incurred in period 70% of Cost of Goods Manufactured Total manufacturing…
Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Wait time Process time Inspection time Move time Queue time The delivery cycle time was: (Round your intermediate calculations to 1 decimal place.) Multiple Choice 4.5 hours 10.7 hours 23.5 hours Hours 12.8 1.9 0.3 4.5 6.2 25.7 hours
A company provides delivery services and uses two activity measures for its costs: the miles driven and the number of customer order. For the most recent month, the company reported the following information: Budgeted Fixed cost per month Variable cost per mile Variable cost per order Actual $13,070 $ 26 per mile $ 14 per order $ 25 $ 13 Miles driven Customer orders Budgeted 74 480 Actual 64 miles 460 orders Spending Variance for total costs $ 294 Unfavorable Q: What was the company's budgeted fixed cost per month? ANS: $ Q: What was the company's activity variance for the month? ANS: $ (Click to select) v
DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations. Month 1 2 3 4 Throughput time (days) ? ? ? ? Delivery cycle time (days) ? ? ? ? Manufacturing cycle efficiency (MCE) ? ? ? ? Percentage of on-time deliveries 77 % 72 % 69 % 66 % Total sales (units) 3880 3715 3525 3391 Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months: Average per Month (in days) 1 2 3 4 Move time per unit 0.7…
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8. Salter Manufacturing Company produces inventory in a highly automated assembly plant in Fall River, Massachusetts. The automated system is in its first year of operation and management is still unsure of the best way to estimate the overhead costs of operations for budgetary purposes. For the first six months of operations, the following data were collected: Machine-hours Kilowatt-hours Total Overhead Costs January 4,560 5,424,000 $405,600 February 4,380 5,208,000 404,160 March 4,680 5,400,000 407,040 April 3,960 5,148,000 404,160 May 3,900 5,040,000 391,200 June 3,720 4,944,000 384,000 Required: a. Use the high-low method to determine the estimating cost function with machine-hours as the cost driver. b. Use the high-low method to determine the estimating cost function with kilowatt-hours as the cost driver. c. For July, the company ran the machines for 4,000 hours and used 4,550,000 kilowatt-hours of power. The overhead costs totaled $365,000. Which cost driver was the…
Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he's collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory Materials inventory on Feb. 28 Direct materials purchased Direct materials used Total manufacturing costs incurred in period Total manufacturing costs incurred in period Total manufacturing costs incurred in period Account Materials Inventory Work in Process Inventory Finished Goods Inventory Account Balances Jan. 31 $2,700 50% of…
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