1. ABC Co. manufactures desks in the finishing and assembly process. Desks are manufactured in 20 unit batches. The finishing time is 12 minutes and the assembly time is 8 minutes per desk. It takes 20 minutes to move a batch of desks from finishing to assembly. (a) Compute the value added, non-value added, and total lead time of this process. (b) Compute the value-added ratio (round to one decimal place if necessary). (c) A study was conducted resulting in the following changes: Desks made in 30 unit batches Finishing time reduced to 8 minutes Move time reduced to 16 minutes Compute the total lead time and value added ratio after the process changes:
1. ABC Co. manufactures desks in the finishing and assembly process. Desks are manufactured in 20 unit batches. The finishing time is 12 minutes and the assembly time is 8 minutes per desk. It takes 20 minutes to move a batch of desks from finishing to assembly. (a) Compute the value added, non-value added, and total lead time of this process. (b) Compute the value-added ratio (round to one decimal place if necessary). (c) A study was conducted resulting in the following changes: Desks made in 30 unit batches Finishing time reduced to 8 minutes Move time reduced to 16 minutes Compute the total lead time and value added ratio after the process changes:
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 2CE: Assume that at the beginning of 20x2, Cicleta trained the 2 assembly workers in a new approach that...
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1. ABC Co. manufactures desks in the finishing and assembly process. Desks are | |||||||
manufactured in 20 unit batches. The finishing time is 12 minutes and the assembly | |||||||
time is 8 minutes per desk. It takes 20 minutes to move a batch of desks from | |||||||
finishing to assembly. | |||||||
(a) Compute the value added, non-value added, and total lead time of this process. | |||||||
(b) Compute the value-added ratio (round to one decimal place if necessary). | |||||||
(c) A study was conducted resulting in the following changes: | |||||||
Desks made in 30 unit batches | |||||||
Finishing time reduced to 8 minutes | |||||||
Move time reduced to 16 minutes | |||||||
Compute the total lead time and value added ratio after the process changes: | |||||||
2. Johnny Co. operates under the lean philosophy. As a result, it has a production cell | |||||||
for its power drills. The conversion costs for 4,000 hours of production is budgeted for | |||||||
the year at $2,400,000. During January, 2,000 units were started and completed. Each | |||||||
drill requires 12 minutes of cell production time. | |||||||
(a) Determine the budgeted cell conversion costs per hour | |||||||
(b) Determine the conversion |
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