Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quality control measures: Number of defects Number of warranty claims Number of customer complaints Material control measures: Purchase order lead time Scrap as a

image

Quality control measures: Number of defects Number of warranty claims Number of customer complaints Material control measures: Purchase order lead time Scrap as a percent of total cost Machine performance measures: Machine downtime as a percentage of availability Use as a percentage of availability Setup time (hours) Delivery performance measures: Throughput time Manufacturing cycle efficiency (MCE) Delivery cycle time Percentage of on-time deliveries Month 2 3 196 174 135 96 57 113 50 41 38 107 90 69 8 days 7 days 5 days 4 days 1% 1% 2% 3% 2% 3% 3% 4% 96% 93% 90% 86% 8 10 11 12 ? ? ? 97% 222 ? ? ? ? ? ? 96% 93% 90% The president has read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how they are computed. You have been asked to assist the company, and you have gathered the following data relating to these measures: Average per Month (in days) 1 2 3 4 Wait time per order before start of production 8.0 10.4 11.0 13.0 Inspection time per unit 0.9 0.8 0.8 0.8 Process time per unit 2.4 2.3 2.2 1.9 Queue time per unit 4.3 4.9 5.4 Move time per unit 0.4 0.6 0.6 6.6 0.7 Required: 1-a. Compute the throughput time for each month. 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. 3-a. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE. 3-b. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production. Compute the new throughput time and MCE. Complete this question by entering your answers in the tabs below. Required 1 Required 3 1-a. Compute the throughput time for each month. 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. Note: Round your answers to 1 decimal place. Throughput Time Manufacturing Cycle Efficiency (MCE) Delivery Cycle Time Month 1 days % days Month 2 days % days Month 3 days % days Month 4 days days Show less

Step by Step Solution

3.44 Rating (141 Votes )

There are 3 Steps involved in it

Step: 1

ANSWER Required 1 1a Compute the throughput time for each month Throughput time is the total time it takes for a product to move through the entire pr... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions

Question

3. Keep a list of suggestions.

Answered: 1 week ago

Question

What is meant by the term cost behavior?

Answered: 1 week ago