Asked by jennifer ocampo on May 28, 2024
Verified
Schlarbaum Corporation's management keeps track of the time it takes to process orders.During the most recent month, the following average times were recorded per order: 
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 amount of time taken for a product to pass through all stages of production from start to finish, including processing time, wait time, and move time.
Manufacturing Cycle Efficiency
A metric that measures the efficiency of the manufacturing process, calculated as the value-added time divided by the total cycle time.
Non-Value-Added
Activities or processes that do not add value to the product or service from the customer's perspective, leading to unnecessary costs.
- Compute and elucidate the duration of throughput time.
- Compute and comprehend the efficiency of the manufacturing cycle (MCE).
- Examine the correlation between metrics of operational performance and financial results.
Verified Answer
BH
Brent HymanJun 03, 2024
Final Answer :
a.Throughput time
= Process time + Inspection time + Move time + Queue time
= 1.3 days + 0.2 days + 0.8 days + 6.9 days = 9.2 days
b.MCE = Value-added time (Process time)÷ Throughput time
= 1.3 days ÷ 9.2 days = 0.14
c.Percentage of time spent on non-value-added activities
= 100% - MCE% = 100% - 14% = 86%
d.Delivery cycle time = Wait time + Throughput time
= 3.7 days + 9.2 days = 12.9 days
= Process time + Inspection time + Move time + Queue time
= 1.3 days + 0.2 days + 0.8 days + 6.9 days = 9.2 days
b.MCE = Value-added time (Process time)÷ Throughput time
= 1.3 days ÷ 9.2 days = 0.14
c.Percentage of time spent on non-value-added activities
= 100% - MCE% = 100% - 14% = 86%
d.Delivery cycle time = Wait time + Throughput time
= 3.7 days + 9.2 days = 12.9 days
Learning Objectives
- Compute and elucidate the duration of throughput time.
- Compute and comprehend the efficiency of the manufacturing cycle (MCE).
- Examine the correlation between metrics of operational performance and financial results.