EXERCISE 11–3 Measures of Internal Business Process Performance [LO3]
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:
1. Compute the throughput time.
2. Compute the manufacturing cycle efficiency (MCE) for the quarter.
3. What percentage of the throughput time was spent in non–value-added activities?
4. Compute the delivery cycle time.
5. If by using Lean Production all queue time can be eliminated in production, what will be the new MCE?
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