Computer has a manufacturing plant in des moines that theoretical capability to produce 243,000 laptops per quarter but currently produces 91,125 units. The conversion cost per quarter is $7,290,000. There are 60,750 production hours available within the plant per quarter. In addition to the processing minutes per unit use the production of the laptop uses 10 minutes of bullet time, 10 minutes of wait time, and 10 minutes of rework time.

a. If the plant layout is improved by reducing *blank* then MCE will increase. Then conversion cost per unit will decrease.

b. Assume that you set an MCE target of 75% based on the improvement strategy described above. This implies an MCE ratio of *blank*

Cycle Time and Velocity, MCE Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce 243,000 laptops per quarter but currently produces 91,125 units. The conversion cost per quarter is $7,290,000. There are 60,750 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of the laptops uses 10 minutes of move time, 10 minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.) Note: Assume that the company identifies poor plant layout as the root cause of wait time. Required: a. If the plant layout is improved by reducing wait time x , then MCE will increase . Then conversion b. Assume that you set an MCE target of 75 percent, based on the improvement strategy described above. This implies an MCE ratio of: 15/30 X 7 Cred by Work Review what you have learned about customer value