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

Hours

Processing (two departments) .... 42.0

Inspecting ............ 2.8

Rework ............. 7.0

Moving (three moves) ....... 11.2

Waiting (for the second process) .... 33.6

Storage (before delivery to customer) . 43.4

Required:

1. Compute the MCE for this product.

2. A study lists the following root causes of the inefficiencies: poor quality components from suppliers, lack of skilled workers, and inefficient 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. Is MCE a lag or a lead measure? If and when MCE acts as a lag measure, what lead measures would affect it?