Question

Wolk Corporation is a highly automated manufacturing firm. The vice president of finance has decided that...

Wolk Corporation is a highly automated manufacturing firm. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor for this company is insignificant in terms of the total cost of production and tends to be fixed, material quality is considered more important than minimizing material cost, and customer satisfaction is the number one priority. As a result, delivery performance measures have been chosen to evaluate performance. The following information is considered typical of the time involved to complete customer orders.

From time order is placed to time order received by manufacturing 16.0 days
From time order is received by manufacturing to time production begins 8.0 days
Inspection time 3.0 days
Process (manufacturing) time 6.0 days
Move time 4.0 days

What is the production (manufacturing) lead time for this order?

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Answer #1

Production lead time = from the time order is placed + from the time order is received + process time

= 16+8+6

= 30 days

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