Exercise 12-3 Measures of Internal Business Process Performance [LO12-3] 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 time0.7dayWait time (from order tostart of production)16.5daysProcess time3.0daysMove time0.6dayQueue time3.8days 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediate calculations. Round your percentage answer to nearest whole percent.)

Throughput time is total amount of time required for a product to pass through the whole…

Answered: Exercise 12-3 Measures of Internal…

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter27: Lean Principles, Lean Accounting, And Activity Analysis

Section: Chapter Questions

Problem 27.20EX

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Exercise 12-3 Measures of Internal Business Process Performance [LO12-3]

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	0.7	day
Wait time (from order tostart of production)	16.5	days
Process time	3.0	days
Move time	0.6	day
Queue time	3.8	days

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

5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediate calculations. Round your percentage answer to nearest whole percent.)

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