Required: Which segment is more efficient in terms of manufacturing efficiency? How can managementimprove its waiting time?To answer this question, compute for the following:1. Throughput time2. Manufacturing Cycle Efficiency (MCE)3. Delivery Time Case 3: Operational Performance MeasuresDEF Company is manufacturing two (2) products, A and B. These products are tailored to fit the customers'needs. According to its market research, many customer complaints have been received due to its notoriouslylong waiting time. The management of DEF Company has decided to keep track of the time to complete acustomer order. Based on the recent quarter, the following average times were recorded per order per product:Product AProduct BWait time107Inspection time10.5Process time32Move time10.5Queue timeDifferent business segments handle each product. Segment A handles Product A, while Segment B handlesProduct B. The management is evaluating the efficiency of each segment.

Throughput time is the total time incurred in the production process to manufacture a product.

Required: Which segment is more efficient in terms of manufacturing efficiency? How can management improve its waiting time? To answer this question, compute for the following: 1. Throughput time 2. Manufacturing Cycle Efficiency (MCE) 3. Delivery Time

Required: Which segment is more efficient in terms of manufacturing efficiency? How can management improve its waiting time? To answer this question, compute for the following: 1. Throughput time 2. Manufacturing Cycle Efficiency (MCE) 3. Delivery Time

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

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Required: Which segment is more efficient in terms of manufacturing efficiency? How can management
improve its waiting time?

To answer this question, compute for the following:
1. Throughput time
2. Manufacturing Cycle Efficiency (MCE)
3. Delivery Time

Case 3: Operational Performance Measures
DEF Company is manufacturing two (2) products, A and B. These products are tailored to fit the customers'
needs. According to its market research, many customer complaints have been received due to its notoriously
long waiting time. The management of DEF Company has decided to keep track of the time to complete a
customer order. Based on the recent quarter, the following average times were recorded per order per product:
Product A
Product B
Wait time
10
7
Inspection time
1
0.5
Process time
3
2
Move time
1
0.5
Queue time
Different business segments handle each product. Segment A handles Product A, while Segment B handles
Product B. The management is evaluating the efficiency of each segment.

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