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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

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:

 

Text Box: Inspection time . . . . . . . . . . . . . . . . . . . . .	0.5 days Process time . . . . . . . . . . . . . . . . . . . . . . .	2.8 days Wait time. . . . . . . . . . . . . . . . . . . . . . . . . .	16.0 days Queue time . . . . . . . . . . . . . . . . . . . . . . . .	4.0 days Move time . . . . . . . . . . . . . . . . . . . . . . . . .	0.7 days

 

Required:

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?

Jun 28 2020 View more View Less

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