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EXERCISE 9-3 Measures of Internal Business Process Performance [LO9-3] Management of Mittel Rhein...

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Accounting

EXERCISE 9-3 Measures of Internal Business Process Performance [LO9-3]
Management of Mittel Rhein AG of Kln, 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:
Required:
Compute the throughput time.
Compute the manufacturing cycle efficiency (MCE) for the quarter.
What percentage of the throughput time was spent in non-value-added activities?
Compute the delivery cycle time.
If by using Lean Production all queue time during production is eliminated, what will be the new
MCE?
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