PROBLEM #2 Novex Company keeps careful track of the time to complete customer orders. During the most recent quarter, the following average times were recorded for each unit or order: Days 17.0 Inspection time. . . . . . . .0.4 Wait time.... Process time.... .2.0 Move time ..... Queue time..... Goods are shipped as soon as production is completed. ..0.6 .5.0 Required: 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE). 3. What percentage of the production time is spent in non-value-added activities? 4. Compute the delivery cycle time.
PROBLEM #2 Novex Company keeps careful track of the time to complete customer orders. During the most recent quarter, the following average times were recorded for each unit or order: Days 17.0 Inspection time. . . . . . . .0.4 Wait time.... Process time.... .2.0 Move time ..... Queue time..... Goods are shipped as soon as production is completed. ..0.6 .5.0 Required: 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE). 3. What percentage of the production time is spent in non-value-added activities? 4. Compute the delivery cycle time.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:PROBLEM #2
Novex Company keeps careful track of the time to complete customer orders. During the most recent
quarter, the following average times were recorded for each unit or order:
Days
. 17.0
Wait time.....
Inspection time........0.4
Process time ..........2.0
Move time .....
Queue time....
.5.0
Goods are shipped as soon as production is completed.
..0.6
Required:
1. Compute the throughput time.
2. Compute the manufacturing cycle efficiency (MCE).
3. What percentage of the production time is spent in non-value-added activities?
4. Compute the delivery cycle time.
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