Question
STRATEGIC COST MANAGEMENT 1.HJW Corporation has provided the following data for one of its products: Days Moving time 8 days Inspection time 2 days Processing
STRATEGIC COST MANAGEMENT
1.HJW Corporation has provided the following data for one of its products:
Days
Moving time 8 days
Inspection time 2 days
Processing time 10 days
Storage time 30 days
Required:
Compute for the following items:
a.Total amount of the value-added time.
b.Total amount of non-value-added time.
c.Product's cycle time.
d.Manufacturing cycle efficiency.
2.If a company has a manufacturing cycle efficiency (MCE) of less than 1, what does it mean?And what will be your advice to the management? Explain.
3.How would you interpret an MCE of 0.40?
4.Assume that HJW Corporation has provided the following data for one of its products:
Days
Process time 3 days
Queue time 4 days
Inspection time 0.7 days
Move time 0.3 days
Wait time 9 days
Required:
a.Compute for the delivery cycle time.
b.Compute for HJW's manufacturing cycle efficiency.
c.What does HJW's MCE indicate? And what will be your advice?
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
13th Canadian edition
133405508, 978-0133405507
