Question

Schlarbaum Corporations management keeps track of the time it takes to process orders. During the most recent month, the fol

2.

The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income Average operating asseCabell Products is a division of a major corporation. Last year the division had total sales of $24,240,000, net operating in

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Answer #1

ANSWER:

(a)

Throughput time = Inspection time + Process time + Move time + Queue time

= 0.5 + 1.2 + 0.2 + 2.4 = 4.3 days

(b)

Manufacturing cycle efficiency = Process time/Throughput time

= 1.2/4.3 = 0.28 or 28%

(c)

Percentage of the production time in non-value-added activities = 1- 0.28 = 72%

(d)

Delivery cycle time = Wait time + Throughput time

= 11.7 + 4.3 = 16 days

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