Improvement in their purchase requisition process

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Reference no: EM132205041

ACME engineering wants to define areas for improvement in their Purchase Requisition process. A team walked the process and recorded the following information. Packages originate in the Business Management Office (BMO). The package gets reviewed and entered into the SAP system which takes an average of 4 hours. The in-box has no PRs waiting to be logged in it. The package is then checked by Finance which takes an average of 8 hours per package. There are fifteen (15) packages waiting for checking. Seventeen percent (17%) of the packages are returned to the BMO for problems. The accepted PRs go through the special approval process by Procurement which takes an average of 5 days. There are 25 packages waiting for approval. The packages are then sent out for release. The goal of the department is to release 8 packages per week (customer requirement). Assume an 8 hr day. Use the above data to answer the following question:

What is the Total Queue Time of the above process?

What is the total lead time of the process in previous question?

Reference no: EM132205041

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