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Nelson Extruding produces containers for nurseries and landscaping businesses. The company competes based on its low-cost, high-quality products. As the companys expenses have risen, management
Nelson Extruding produces containers for nurseries and landscaping businesses. The company competes based on its low-cost, high-quality products. As the companys 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 | 35 minutes | |||
Materials moved to station 2 | 7 minutes | |||
Wait to begin at station 2 | 8 minutes | |||
Production in station 2 | 44 minutes | |||
Inspection | 3 minutes | |||
Materials moved to finished goods inventory | 7 minutes |
(a) | What is the manufacturing cycle time (throughput time) to produce a batch of 1-inch plant flats and prepare it for sale? | |||||
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(b) | How much of the process time is value-added? | |||||
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Calculate the manufacturing cycle efficiency. (Round answer to 1 decimal place, e.g. 5.1%.)
Manufacturing cycle efficiency | % |
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