Asked by Mariam Al-khayyat on May 12, 2024
Verified
During the most recent month at Schwab Corporation, queue time was 7.8 days, inspection time was 0.3 day, process time was 1.3 days, wait time was 9.7 days, and move time was 0.7 day.
Required:
a.Compute the throughput time.
b.Compute the manufacturing cycle efficiency (MCE).
c.What percentage of the production time is spent in non-value-added activities?
d.Compute the delivery cycle time.
Throughput Time
The total amount of time it takes for a product to move through the entire production process, from start to finish.
Manufacturing Cycle Efficiency
A measure of the effectiveness of a production process, calculated as the productive manufacturing time divided by the total cycle time.
Non-Value-Added
Activities or processes that consume resources but do not add to the product's value or the customer's experience.
- Analyze and understand the calculation of throughput time.
- Assess and recognize the proficiency of the manufacturing cycle efficiency (MCE).
- Analyze the relationship between operational performance metrics and financial outcomes.
Verified Answer
DM
Didier MonterrozaMay 13, 2024
Final Answer :
a.Throughput time
= Process time + Inspection time + Move time + Queue time
= 1.3 days + 0.3 days + 0.7 days + 7.8 days = 10.1 days
b.MCE = Value-added time (Process time)÷ Throughput time
= 1.3 days ÷ 10.1 days = 0.13
c.Percentage of time spent on non-value-added activities
= 100% - MCE% = 100% - 13% = 87%
d.Delivery cycle time = Wait time + Throughput time
= 9.7 days + 10.1 days = 19.8 days
= Process time + Inspection time + Move time + Queue time
= 1.3 days + 0.3 days + 0.7 days + 7.8 days = 10.1 days
b.MCE = Value-added time (Process time)÷ Throughput time
= 1.3 days ÷ 10.1 days = 0.13
c.Percentage of time spent on non-value-added activities
= 100% - MCE% = 100% - 13% = 87%
d.Delivery cycle time = Wait time + Throughput time
= 9.7 days + 10.1 days = 19.8 days
Learning Objectives
- Analyze and understand the calculation of throughput time.
- Assess and recognize the proficiency of the manufacturing cycle efficiency (MCE).
- Analyze the relationship between operational performance metrics and financial outcomes.