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The following information is from a manufacturing company. Process time Inspection time Move time Wait time 20.0 minutes 3.0

The following information is from a manufacturing company. Process time Inspection time Move time Wait time 20.0 minutes 3.0

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Answer #1

Part - a:

Computation of manufacturing cycle time is:

Manufacturing cycle time Time Process time Inspection time Move time Queue time Manufacturing cycle time 20 minutes 3.0 minut

Hence, the manufacturing cycle time is 31.6 minutes.

Part - b:

Computation of manufacturing cycle efficiency is:

Compute manufacturing cycle efficiency Numerator 1 Denominator Manufacturing cycle efficiency Process time 1 Manufacturing cy

Working Notes:

1.

Computation the percentage of time devoted on value added activities are:

Percentage of time devoted on value added activities = (Process time / Manufacturing cycle time) * 100

= (20 minutes / 31.6 minutes) * 100

= 63%

Hence, the percentage of time devoted on value added activities are 63%.

2.

Computation the percentage of time devoted on non-value added activities are:

Percentage of time devoted on non-value added activities = ((Inspection time + Move time) / Manufacturing cycle time) * 100

= ((3.0 minutes + 8.6 minutes) / 31.6 minutes) * 100

= (11.6 minutes / 31.6 minutes) * 100

= 37%

Hence, the percentage of time devoted on non-value added activities are 37%.

3.

Computation of manufacturing cycle time is:

Manufacturing cycle time = Queue time + Move time + Inspection time + Process time

= 0 + 8.6 minutes + 3.0 minutes + 20.0 minutes

= 31.6 minutes

Hence, the manufacturing cycle time is 31.6 minutes.

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