Problem - Measures of Internal Business Process Performance
Management of Mittel Rhein AG of Köln, 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
|
|
Wait time (from order to start of production)
|
14.0
|
|
Process time
|
2.7
|
|
Move time
|
1.0
|
|
Queue time
|
5.0
|
Requirement 1: Compute the throughput time.
Requirement 2: Compute the manufacturing cycle efficiency (MCE) for the quarter.
Requirement 3: What percentage of the throughput time was spent in non-value-added activities?
Requirement 4: Compute the delivery cycle time.
Requirement 5: If by using Lean Production all queue time during production is eliminated, what will be the new MCE?