Loehr Corporation's Management Reports That Its Average Delivery Cycle Time

question 33

Essay

Loehr Corporation's management reports that its average delivery cycle time is 14.0 days, its average throughput time is 6.3 days, its manufacturing cycle efficiency (MCE) is 0.27, its average move time is 0.1 day, and its average queue time is 3.9 days.
Required:
a. What is the wait time?
b. What is the process time?
c. What is the inspection time?

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Definitions:

Variable Overhead Spending Variance

The difference between the actual costs incurred for variable overheads and the expected costs of variable overheads based on standard cost.

Fixed Overhead Spending Variance

This metric measures the difference between the actual fixed overhead costs incurred and the budgeted (or standard) fixed overhead costs.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost for the actual level of activity.

Performance Evaluation

The process of assessing the effectiveness and efficiency of individuals, teams, or systems within an organization.