Cellular manufacturing and cycle time efficiency Ray Brown's company, Whis per Voice Systems, is trying to increase
Question:
Cellular manufacturing and cycle time efficiency Ray Brown's company, Whis¬ per Voice Systems, is trying to increase its manufacturing cycle efficiency (MCE). Because Ray has a very limited budget, he has been searching for a way to in¬ crease his MCE by using cellular manufacturing. One of Ray's manufacturing managers, Maria Lopez, has been studying cellular manufacturing and claims that with minimal cost that includes downtime in the operation she can re¬ arrange existing machinery and workers and improve MCE. Ray is quite skeptical about this and decides to allow Maria to rearrange a small part of his operation. For Ray to be satisfied, he has stated that MCE must increase by 12%. MCE data before and after the rearrangement are as follows:
Does the change in MCE meet Ray's requirement? Why or why not?
Step by Step Answer:
Management Accounting
ISBN: 9780130101952
3rd Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, S. Mark Young, Rajiv D. Banker, Pajiv D. Banker