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  • 3 Solution Problen 11

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    AHMED MOHAMED YUSUF
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    The document provides calculations and data related to throughput time, manufacturing cycle efficiency (MCE), non-value added time, delivery cycle time, and the relationship between sales, net operating income, average income, and return on investment (ROI). It shows that as sales increase, ROI increases by 0.0125. MCE can be increased to 0.7 by eliminating all queue time in production using Lean Production. Currently, non-value added time accounts for 65% of throughput time.

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    3 SOLUTION PROBLEN 11

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    The document provides calculations and data related to throughput time, manufacturing cycle efficiency (MCE), non-value added time, delivery cycle time, and the relationship between sales, net operating income, average income, and return on investment (ROI). It shows that as sales increase, ROI increases by 0.0125. MCE can be increased to 0.7 by eliminating all queue time in production using Lean Production. Currently, non-value added time accounts for 65% of throughput time.

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    © All Rights Reserved
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    9 views1 page

    3 Solution Problen 11

    Uploaded by

    AHMED MOHAMED YUSUF
    The document provides calculations and data related to throughput time, manufacturing cycle efficiency (MCE), non-value added time, delivery cycle time, and the relationship between sales, net operating income, average income, and return on investment (ROI). It shows that as sales increase, ROI increases by 0.0125. MCE can be increased to 0.7 by eliminating all queue time in production using Lean Production. Currently, non-value added time accounts for 65% of throughput time.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    3 SOLUTION PROBLEN 11-3

    Compute the throughput time.

    Throughput time 8

    Compute the manufacturing cycle efficiency (MCE) for the quarter

    MCE 0.35

    What percentage of the throughput time was spent in non-value-added activities?

    non-value-added throughput tim 0.65

    Compute the delivery cycle time. 24

    If by using Lean Production all queue time can be eliminated in production, what will be the new MCE?
    0.7

    5: SOLUTION PROBLEN 11-5

    Complete the following table showing the relationship between sales and return on investment (ROI).
    Sales Net Operate Average Income ROI
    4500000 290000 800000 0.3625
    4600000 300000 800000 0.375
    4700000 310000 800000 0.3875
    4800000 320000 800000 0.4
    4900000 330000 800000 0.4125
    5000000 340000 800000 0.425

    What happens to the company's return on investment (ROI) as sales increase?

    ROI increases by 0.0125

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