Exercise $12-3($Algo$)$ Measures of Internal Business Process Performance $[$LO$12-3]$

Management of Mittel Company 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:Wait time $($from order to start of production$)$

Process time

Move time

Queue time$0\mathrm{.}5$ days

$16\mathrm{.}7$ days

$3\mathrm{.}3$ days

$1\mathrm{.}2$ days

$4\mathrm{.}6$ days

Required:

Compute the throughput time. $($Round your answer to $1$ decimal place.$)$

$2$ Compute the manufacturing cycle efficlency $($MCE$)$ for the quarter. $($Round your percentage answer to nearest

whole percent.$)$

What percentage of the throughput time was spent in non$-$value$-$added activitles? $($Round your percentage

answer to nearest whole percent.$)$

Compute the delivery cycle time. $($Round your intermedlate calculations and inal answer to $1$ declmal place.$)$

If by using Lean Production all queue time during production is eliminated, what will be the new MCE? $($Do not

round Intermedate calculatlons. Round your percentage answer to $1$ decimal place.$)$