# Management of mittel rhein ag of köln, germany, would like to reduce the amount of time between when

###### Question:

## Answers

1) THROUGHPUT TIME =9 DAYS

2) MCE = 0.3 OR 30%

3) THE PERCENTAGE IS 70%

4) DELIVERY CYCLE TIME = 23 DAYS

5) NEW MCE = 0.675 OR 67.5%

Explanation:

1)-

THROUGHPUT TIME = PROCESS TIME + INSPECTION TIME + MOVE TIME + QUEUE TIME

= 2.7 + 0.3 + 1 + 5

= 9 DAYS

2)-

MCE = VALUE ADDED TIME / THROUGHPUT TIME

= 2.7 / 9

= 0.3 OR 30%

3)-

THE PERCENTAGE IS 70% BECAUSE THE MCE IS 30%, THEN 30% OF THE THROUGHPUT TIME WAS SPENT IN VALUE-ADDED ACTIVITIES.

4)-

DELIVERY CYCLE TIME = WAIT TIME + THROUGHPUT TIME

= 14.0 + 9.0

= 23 DAYS

5)-

NEW THROUGHPUT TIME = PROCESS TIME + INSPECTION TIME + MOVE TIME

= 2.7 + 0.3 + 1

= 4 DAYS

NEW MCE = VALUE ADDED TIME / NEW THROUGHPUT TIME

= 2.7 / 4

= 0.675 OR 67.5%

1. 9.4 days

2. 9.4 days

3. 60%

4. 25.1 days

5. 5.2 days

Explanation:

1. The Computation of throughput time is shown below:-

Throughput time = Process time + Inspection time + Move time + Queue time

= 3.4 + 0.7 + 1.1 + 4.2

= 9.4 days

2. The computation of Manufacturing Cycle Efficiency is given below:-

Manufacturing Cycle Efficiency Formula = Value added time (Process time) ÷ Manufacturing cycle time

Manufacturing cycle time = Process time + Inspection time + Move time + Queue time

= 3.4 + 0.7 + 1.1 + 4.2

= 9.4 days

Now, we will put into formula

So, Manufacturing Cycle Efficiency = 3.4 ÷ 9.4

= 0.4

3. The computation of percentage of the throughput time is shown below:-

= 1 - Manufacturing cycle efficiency

= (1 - 0.4)

= 60%

4. The computation of delivery Cycle Time is shown below:-

Delivery Cycle Time = Wait time + Throughput time

= 15.7 ÷ 9.4

= 25.1 days

5. The calculation of new manufacturing cycle efficiency is shown below:-

New MCE = Process time + Inspection time + Move time

= 3.4+0.7+1.1

= 5.2 days

1. The throughput time is 9 days

2. The MCE is 0.30

3. 70% of the throughput time was spent on non-value added activities.

4. The delivery cycle time is 23 days

5. The New MCE is 67.5%

Explanation:

1. To calculate the throughput time we would have to use to make the following calculation:

throughput time=process time+inspection time+movie time+queue time

throughput time=2.7+0.3+1+5

throughput time=9 days

2. To calculate the MCE we would have to use to make the following calculation:

MCE=value added time/throughput time

MCE=2.7/9=0.30

3. MCE is 30% which means that out of the total throughput time, time spent on value added activities was 30%. Thus it means that 70% of the throughput time was spent on non-value added activities.

4. To calculate the delivery cycle time we would have to use to make the following calculation:

delivery cycle time=wait time+throughput time

delivery cycle time=14+9=23 days

5. To calculate the new MCE we would have to use to make the following calculation:

New MCE=value added time/throughput time

New MCE=2.7/4

New MCE=67.5%

1. Throughput Time = 9.2 days

2. Manufacturing Cycle Efficiency = 29%

3. 71% throughput time was spent in non value added activities.

4. Delivery Cycle Time = 25.8 days

5. New MCE = 57%

Explanation:

Given

Inspection time 0.7 days

Wait time 16.6 days

Process time 2.7 days

Move time 1.3 days

Queue time 4.5 days

1. The throughput time is calculated by adding all time except the wait time.

I.e.

Throughput time = Inspection time + Process time + Move time + Queue time

Throughput Time = 0.7 days + 2.7 days + 1.3 days + 4.5 days

Throughput Time = 9.2 days

2. Calculating the manufacturing cycle efficiency.

Manufacturing Cycle Efficiency is calculated by dividing value added time by throughput time.

Where the value added time = the process time = 2.7 days

And throughput time = 9.2 days (calculated in (a) above)

Manufacturing Cycle Efficiency = 2.7 days ÷ 9.2 days

Manufacturing Cycle Efficiency = 0.2934782609

Manufacturing Cycle Efficiency = 29.34782609%

Manufacturing Cycle Efficiency = 29%

3. Calculating the percentage of the throughput time was spent in non–value-added activities.

This is calculated by subtracting MCE calculated above from 100%

% throughput time = 100% - 29%

% throughput time = 71%

So, if 29% throughput time was spent in value added activities, 71% throughput time was spent in non value added activities.

4. Calculating the delivery cycle time.

This is calculated by adding the wait time to throughput time.

i.e.

Delivery Cycle Time = Wait Time + Throughput Time

Where Wait Time = 16.6 days and Throughput Time = 9.2 days

Delivery Cycle Time = 16.6 days + 9.2 days

Delivery Cycle Time = 25.8 days

5. Calculating new MCE.

Here, we'll used the same formula used in (2) above

i.e

Manufacturing Cycle Efficiency is calculated by dividing value added time by throughput time.

Where the value added time = the process time = 2.7 days

But throughput time will be calculated as

Throughput time = Inspection time + Process time + Move time (because of the elimination of all queue time)

Throughput Time = 0.7 days + 2.7 days + 1.3 days

Throughput Time = 4.7 days

So, New MCE = 2.7 days ÷ 4.7 days

New MCE = 0.5744680851

New MCE = 57.44680861%

New MCE = 57%

Explanation:

1. Throughput time = 2.7 + 0.7 + 1.3 + 4.5 (process + inspection + move + queue) = 9.2 days

2. Manufacturing cycle efficiency (MCE) = Value added time / throughput time

= 2.7 / 9.2 = 29%

3. Non–value-added throughput percentage = 100% - 29% = 71%

4. Delivery cycle time = wait time + throughput time

= 16.6 + 9.2

=25.8 days

5. New manufacturing efficiency = Value added time / Throughput time

= 2.7 / (2.7 + 0.7 + 1.3)

= 2.7 / 4.7 = 57.4%

Explanation:

The computations are shown below:

1 As we know that.

Inspection time = Average throughput time - process time - average move time - average queue time

0.3 days = Average throughput time - 2.7 days - 1.0 days - 5.0 days

So, the average throughput time is 9 days

2. As we know that

Process time = Manufacturing cycle efficiency (MCE) × average throughput time

2.7 days = Manufacturing cycle efficiency (MCE) × 9 days

So, Manufacturing cycle efficiency (MCE) is 0.3 or 30%

3. Since the Manufacturing cycle efficiency (MCE) comes 30% of the through put time so the percentage is 70% percentage

4. As we know that

Wait time = Delivery cycle time - average throughput time

14.0 days = Delivery cycle time - 9 days

So, the delivery cycle time is 23 days

5. As we know that

Inspection time = Average throughput time - process time - average move time

0.3 days = Average throughput time - 2.7 days - 1.0 days

So, average throughput time is 4 days

Now the Manufacturing cycle efficiency (MCE) is

Process time = Manufacturing cycle efficiency (MCE) × average throughput time

2.7 days = Manufacturing cycle efficiency (MCE) × 4 days

So, Manufacturing cycle efficiency (MCE) is 0.675 or 67.5%

Throughput (manufacturing cycle) time = 9.2

Manufacturing Cycle Efficiency Time= 30%

Non Value Added Activities = 70%

Delivery Cycle Time = 25.9

NEW MCE using LEan Production= 57.44 %

Explanation:

1. Throughput (manufacturing cycle) time = Inspection Time + Process Time + Move Time + Queue time

Throughput (manufacturing cycle) time = 0.7+2.7+ 1.3+4.5= 9.2

2. Manufacturing Cycle Efficiency Time= Value added Time/ Manufacturing Cycle time

Manufacturing Cycle Efficiency Time= Process Time/ Processing Time + Inspection Time + Move Time + Queue time

Manufacturing Cycle Efficiency Time= 2.7/ 9.2= 29.47% = 29.5%= 30%

3. MCE means that 30% of throughput consists of actual processing and 70 % consists of Non value added activities.

Non Value Added Time= Wait time + Inspection Time + Move Time + Queue Time

Non Value Added Time=16.6 + 0.8+ 1.3+ 4.5= 23.2

4. Delivery Cycle Time= NonValue Added time + Value Added Time (Process Time)

Delivery Cycle Time= 23.2 + 2.7= 25.9

5. If the queue time is eliminated using Lean Production the MCE is calculated as

Manufacturing Cycle Efficiency Time= Process Time/ Processing Time + Inspection Time + Move Time

Manufacturing Cycle Efficiency Time= 2.7/4.7= 57.44%

This means that MCE increases to 57.44 % . This improves the MCE and reduces the throughput time by using Lean Productions.