Chapter 13, Problem 25P

Auflegger, Inc., manufactures a product that experiences the following activities (and times):

Required:

1. 1. Compute the MCE for this product.
2. 2. A study lists the following root causes of the inefficiencies: poor quality components from suppliers, lack of skilled workers, and plant layout. Suggest a possible cost reduction strategy, expressed as a series of if-then statements that will reduce MCE and lower costs. Finally, prepare a strategy map that illustrates the causal paths. In preparing the map, use only three perspectives: learning and growth, process, and financial.
3. 3. Is MCE a lag or a lead measure? If and when MCE acts as a lag measure, what lead measures would affect it?