Nelson Extruding produces containers for nurseries and landscaping businesses. The company competes based on its low-cost, high-quality products. As the company's expenses have risen, management has become concerned with the need to streamline various processes in order to reduce costs without reducing quality. The following table shows the time needed to produce a batch of 1-inch plant flats:
Activity______________________________________________________Time to Complete
Materials moved to production floor..........................................................30 minutes
Production in station 1........................................................................63 minutes
Materials moved to station 2..................................................................11 minutes
Wait to begin at station 2......................................................................15 minutes
Production in station 2.......................................................................114 minutes
Inspection........................................................................................5 minutes
Materials moved to finished goods inventory.............................................12 minutes
Required
a. What is the manufacturing cycle time (throughput time) to produce a batch of 1-inch plant flats and prepare it for sale?
b. How much of the process time is value-added?
c. Calculate the manufacturing cycle efficiency.
d. What suggestions do you have for eliminating non-value-added time?