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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
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 15 minutes of move time, 16 minutes of wait time, and 5 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 move time. Required: a. If the plant layout is improved by reducing wait time, move time and rework time x then MCE will increase . Then conversion costruit will dece b. Assume that you set an MCE target of 50 perd! rework time described above. move time This implies an MCE ratio of: 15/30 wait time, move time and rework time
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