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 is moved across the company’s 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	33	hours		33	hours
Inspection time	5	hours		5	hours
Move time	6	hours		4	hours
Wait time	3	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?

Answer 1

Answer to Question 1, 2 and 3:

Question 1 Non Valued Added Time = Inspection time + Move time + Wait time Non Valued Added Time = 5+ 6+3 Non Valued Added Time = 14 hours Question 2 | Numerator Value Added Time Manufacturing Cycle Efficiency Manufacturing Denominator Cycle Efficiency Manufacturing Manufacturing 1 Cycle Time Cycle Efficiency 1 47 70.21% 33 e Formula for Manufacturing Cycle Time: Manufacturing cycle time = Process time + Inspection time + Move time + Wait time Manufacturing cycle time = 33 +5+6+3 Manufacturing cycle time = 47 hours The value added time = Process time = 33 hours 3 Question 3 Non Valued Added Time = Inspection time + Move time + Wait time Non Valued Added Time = 5+4 + 1 Non Valued Added Time = 10 hours

Answer to Question 4 and 5:

Question 4 Numerator Value Added Time Manufacturing Cycle Efficiency Manufacturing Denominator Cycle Efficiency Manufacturing Manufacturing Cycle Time Cycle Efficiency 331 43 = 76.74% Formula for Manufacturing Cycle Time: Manufacturing cycle time = Process time + Inspection time + Move time + Wait time Manufacturing cycle time = 33 +5+4 + 1 Manufacturing cycle time = 43 hours The value added time = Process time = 33 hours Question 5 Yes, it did. Because it resulted in a higher manufacturing cycle efficiency.