Management of Mittel Rhein AG of Koln, Germany, would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported:

Inspection time .......................................................... 0.3 days

Wait time (from order to start of production) ......... 14.0 days

Process time ............................................................... 2.7 days

Move time .................................................................. 1.0 days

Queue time ................................................................. 5.0 days

Required:

1.         Compute the throughput time.

2.         Compute the manufacturing cycle efficiency (MCE) for the quarter.

3.         What percentage of the throughput time was spent in non-value-added activities?

4.         Compute the delivery cycle time.

5.         If by using Lean Production all queue time during production is eliminated, what will be the new MCE?