Compute the manufacturing cycle efficiency


Lipex, Ltd., of Birmingham, England, is interested in cutting the amount of time between when a customer places an order and when the order is completed. For the first quarter of the year, the following data were reported:




  Inspection time 0.3 days
  Process time 2.9 days
  Wait time 16.9 days
  Queue time 4.4 days
  Move time 1.3 days

Required:
1.

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

  Throughput time
days
2.

Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your intermediate calculations to 1 decimal place and final answer to 2 decimal places.)

  Manufacturing cycle efficiency   
3.

What percentage of the throughput time was spent in non-value-added activities? (Round your answer to nearest whole percent. Omit the "%" sign in your response.)

  Non-value-added throughput time %
4.

Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.)

  Delivery cycle time
days
5.

If by using Lean Production all queue time can be eliminated in production, what will be the new MCE?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

  New manufacturing cycle efficiency   

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Accounting Basics: Compute the manufacturing cycle efficiency
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