Question: Exercise 1 2 - 3 ( A l g o ) Measures o f Internal Business Process Performance [ L O 1 2 - 3

Exercise 12-3(Algo) Measures of Internal Business Process Performance [LO12-3]
Management of Mittel Company wants to reduce the elapsed time from when a customer places an order to when itis shipped. It provided the following data for a recent quarter:
Inspection time 0.7 day
Wait time (from order to start of production)17.1 days
Process time 2.7 days
Move time 0.6 day
Queue time 3.5 days
Required:
Compute the throughput time.
Note: Round your answer to1 decimal place.
Compute the manufacturing cycle efficiency (MCE) for the quarter.
Note: Round your percentage answer to nearest whole percent.
What percentage of the throughput time was spent in non-value-added activities?
Note: Round your percentage answer to nearest whole percent.
Compute the delivery cycle time.
Note: Round your intermediate calculations and final answer to1 decimal place.
If using Lean Production eliminates all queue time, what will be the new MCE?
Note: Do not round intermediate calculations. Round your percentage answer to1 decimal place.

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