Question

A customer’s order is delivered (received by the customer) on September 10, 2019. This order was placed with the company on June 5, 2019, and received by the manufacturing department on June 20, 2019. Actual production on the order began on July 10, 2019, and was completed August 10, 2019.

Based on this information, calculate the following for this order:

(a) total customer-response time (CRT),

(b) order receipt time,

(c) manufacturing lead (cycle) time,

(d) manufacturing wait time,

(e) manufacturing (processing) time, and

(f) delivery time.

Answer 1

a)

Customer response time is the period between the placement of an order and the delivery goods or services. It can also refer to the delay in communication or response from business to customer. In other words, it is the time between when a customer makes an inquiry about a product or commits to a purchase a good or service and when it is actually received by said customer.

customer response time jun 5th to september 10 ,2019 = 98 days

b)

Order receipt time is the interval between when an order is received from a customer and when action is taken to fulfill the order. This duration is impacted by the administrative efficiency of an organization and the size of its backlog.

Here June 20 2019 to July 10-2019 =21 days

c)

• In manufacturing, lead time often represents the time it takes to create a product and deliver it to a consumer.

actual production begin = july 10

oder deliverd = september 10 2019

=62 days

d)Time gap between oder recievd by manufacturing Department and actual manufacturing begun

order recievd by manufacturing Department =June 20-2019

Actual Manufacturing started =July 10-2019

=21 days

e)

Production time covers the period from the moment of entry of the means of production into an enterprise up to the completion of the finished product.

Actual Manufacturing started =July 10-2019

Manufacturing completed on =August 10-2019

=32 days

f)the amount of time that it takes for goods that have been bought to arrive at the place where they are wanted

Manufacturing completed on =August 10-2019

Order Recived by customer = september 10-2019

=32 days

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