Question

Oakwood Company produces maple bookcases to customer order. The following information is available for the production of the bookcases Process time Inspection time Move time Wait time 5.0 days 1.1 days 4.1 days 17.0 days Required: 1. Compute the company's manufacturing cycle time. 2. Compute the company's manufacturing cycle efficiency. 3. Management believes it can reduce move time by 1.10 days and wait time by 2.50 days by adopting lean manufacturing techniques. Compute the company's manufacturing cycle efficiency assuming the company's predictions are correct.

Answer 1

Answer

• All working forms part of the answer
• Requirement 1

Manufacturing Cycle Time
Process Time	5.0	days
Inspection Time	1.1	days
Move Time	4.1	days
Wait Time	17.0	days
Manufacturing Cycle Time	27.2	days

• Requirement 2

Manufacturing Cycle Efficiency
Choose Numerator	Choose Denominator	Manufacturing Cycle Efficiency
Process Time	Manufacturing Cycle Time	Manufacturing Cycle Efficiency
5.0	27.2	=5.0/27.2 = 18.4% [or 0.2]

• Requirement 3

Manufacturing Cycle Efficiency
Choose Numerator	Choose Denominator	Manufacturing Cycle Efficiency
Process Time	Manufacturing Cycle Time	Manufacturing Cycle Efficiency
5.0	23.6 [=27.2 – 1.10 – 2.50]	21.2%