Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order:
Days
Wait time 16.7
Inspection time 0.6
Process time 2.0
Move time 1.3
Queue time 3.7
Required:
a. Compute the throughput time. (Round your answer to 1 decimal places.)
b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage.)
c. What percentage of the production time is spent in non-value-added activities? (Do not round intermediate calculations. Round your answer to nearest whole percentage.)
d. Compute the delivery cycle time. (Round your answer to 1 decimal place.)

Throughput time or cycle time is the average amount of time required to convert raw materials into finished goods ready to be shipped to customers. It includes the time required for material handling , production processing , inspection and packaging. The formulae are given below for different times.

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

Throughput (manufacturing cycle) time = 0.6+2.0+ 1.3+3.7= 7.6

b) Manufacturing Cycle Efficiency Time= Value added Time/ Manufacturing Cycle time

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

Manufacturing Cycle Efficiency Time= 2/ 7.6= 26.32% = 26%

Non Value added times are those which are not necessity in the manufacturing process for example wait time etc.

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

Non Value Added Time=16.7 + 0.6+ 1.3+ 3.7= 22.3

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

Delivery Cycle Time= 22.3 + 2.0= 24.3