Nelson Extruding produces containers for nurseries and landscaping businesses. The company competes based on its low-cost, high-quality

Question:

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                 . . . . . . . . . . . . 25 minutes

Production in station 1                                         . . . . . . . . . . . . 47 minutes

Materials moved to station 2                              . . . . . . . . . . . . 10 minutes

Wait to begin at station 2                                     . . . . . . . . . . . . 30 minutes

Production in station 2                                         . . . . . . . . . . . . 140 minutes

Inspection                                                               . . . . . . . . . . . . 8 minutes

Materials moved to finished goods inventory . . . . . . . . . . . . 15 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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9781119577669

4th Edition

Authors: Charles E. Davis, Elizabeth Davis

Question Posted: