Question
Ruiz Foods makes energy bars using a traditional manufacturing process. Raw materials are stored in inventory and then moved into production. Work in process inventory
Ruiz Foods makes energy bars using a traditional manufacturing process. Raw materials are stored in inventory and then moved into production. Work in process inventory is moved across the companys three separate departments. The information below (in the Traditional column) is available for a recent order. If the company adopts lean manufacturing, management believes both move time and wait time can be reduced, as shown in the Lean column.
Activity | Traditional | Lean | ||||
Process time | 29 | hours | 29 | hours | ||
Inspection time | 5 | hours | 5 | hours | ||
Move time | 6 | hours | 3 | hours | ||
Wait time | 2 | hours | 1 | hour | ||
Required 1. Compute the total amount of non-value-added time under the traditional manufacturing process. 2. Compute cycle efficiency under the traditional manufacturing process. (Round your answer to 2 decimal places.) 3. Compute the total amount of non-value-added time under the proposed lean manufacturing process. 4. Compute cycle efficiency under the proposed lean manufacturing process. (Round your answer to 2 decimal places.) 5. Would the proposed lean approach improve cycle efficiency?
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