Management of Mittel Company would like to reduce the amount of time between when a customer places an order and whe order is shipped. For the first quarter of operations during the current year the following data were reported Inspection time Wait time (from order to start of production) 0.6 days 16.6 days 2.6 days 0.5 days 3.7 days Process time Move time Queue time Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answer to nearest whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediete calculations. Round your percentage answer to 1 decimel place.) 7.4 days 1. Throughput time 2 Manufacturing cycle efficiency 3 Non-value-added throughput time ces days 4. Delivery cycle time 5. New manufacturing cycle efficiency
Management of Mittel Company would like to reduce the amount of time between when a customer places an order and whe order is shipped. For the first quarter of operations during the current year the following data were reported Inspection time Wait time (from order to start of production) 0.6 days 16.6 days 2.6 days 0.5 days 3.7 days Process time Move time Queue time Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answer to nearest whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediete calculations. Round your percentage answer to 1 decimel place.) 7.4 days 1. Throughput time 2 Manufacturing cycle efficiency 3 Non-value-added throughput time ces days 4. Delivery cycle time 5. New manufacturing cycle efficiency
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 7CE: Golding Bank provided the following data about its resources and activities for its checking account...
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