Question
Case3:OperationalPerformanceMeasures DEF Company is manufacturing two (2) products, A and B. These products are tailored to fit the customers'needs.Accordingtoitsmarket research,manycustomer complaintshavebeenreceivedduetoitsnotoriouslylong waiting time.The management of
Case3:OperationalPerformanceMeasures
DEF Company is manufacturing two (2) products, A and B. These products are tailored to fit the customers'needs.Accordingtoitsmarket research,manycustomer complaintshavebeenreceivedduetoitsnotoriouslylong waiting time.The management of DEF Company has decided to keep track of the time to complete acustomerorder. Basedontherecentquarter, thefollowingaverage timeswererecorded perorderperproduct:
ProductA | ProductB | |
Wait time | 10 | 7 |
Inspectiontime | 1 | 0.5 |
Processtime | 3 | 2 |
Movetime | 1 | 0.5 |
Queue time | 2 | 3 |
Different business segments handle each product. Segment A handles Product A, while Segment B handlesProduct B.Themanagementisevaluatingtheefficiency ofeachsegment.
Required:Whichsegment ismoreefficientinterms ofmanufacturingefficiency?Howcanmanagementimprove its waitingtime?
Toanswerthisquestion, computeforthefollowing:
- Throughputtime
- ManufacturingCycleEfficiency(MCE)
- DeliveryTime
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Core Concepts Of Accounting
Authors: Leslie Breitner, Robert Anthony
11th Edition
0133125947, 9780133125948
