Mission Oak Company produces oak bookcases to customer order. It received an order from a customer to

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Mission Oak Company produces oak bookcases to customer order. It received an order from a customer to produce 5,000 bookcases. The following information is available for the production of the bookcases.
Process time . . . . . . . . . 18.0 days
Inspection time . . . . . . . 2.0 days
Move time . . . . . . . . . . . 4.4 days
Wait time . . . . . . . . . . . 20.6 days

Required
1. Compute the company’s manufacturing cycle time.
2. Compute the company’s manufacturing cycle efficiency. Interpret your answer.
Analysis Component
3. Assume that Mission Oak wishes to increase its manufacturing cycle efficiency to 0.75. What are some ways that it can accomplish this?

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Managerial Accounting

ISBN: 978-0073379586

2010 Edition

Authors: John J. Wild, Ken W. Shaw

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