Managerial Accounting
14th Edition
ISBN: 9781337270595
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 12, Problem 5E
a)
To determine
Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.
Lead Time: Lead time is the time consumed for the creation of a product. It refers to the time period between the time the order is placed and the product is completed. Lesser lead time creates a more competitive edge for the company.
Lead Time = Wait time + Process time + Queue time + Move time + Inspection Time
To Explain: The reasons for the management to improve setup time.
b)
To determine
To Explain: The various ways through which the management could improve setup time.
c)
To determine
To Calculate: The time required for setup.
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Reduce Setup Time
Vernon Inc. has analyzed the setup time on its computer-controlled lathe. The setup requires changing the type of fixture that holds a part. The average setup time has been 140 minutes, consisting of the following steps:
Turn off machine and remove fixture from lathe
15
minutes
Go to tool room with fixture
15
Record replacement of fixture to tool room
18
Return to lathe
20
Clean lathe
20
Return to tool room
20
Record withdrawal of new fixture from tool room
12
Return to lathe
15
Install new fixture and turn on machine
5
Total setup time
140
minutes
a. A company plans to setup a machine to increase the productivity. The average setup time is 140 minutes. Do you think the management needs to minimize the setup time. Identify the reason that supports the answer.
Yes
No
a
Reason:
The setup time is not a concern of the company as it is not related to productivity of the company.
The setup time should be considered because long…
Vernon Inc. has analyzed the setup time on its computer-controlled lathe. The setup requireschanging the type of fixture that holds a part. The average setup time has been 140 minutes,consisting of the following steps:
Turn off machine and remove fixture from lathe 15 minutesGo to tool room with fixture 15Record replacement of fixture to tool room 18Return to lathe 20Clean lathe 20Return to tool room 20Record withdrawal of new fixture from tool room 12Return to lathe 15Install new fixture and turn on machine 5Total setup time 140 minutesa. Why should management be concerned about improving setup time?b. What do you recommend to Vernon Inc. for improving setup time?c. How much time would be required for a setup, using your suggestion in (b)?
time has been 140 minutes, consisting of the following
steps:
Turn off machine and remove fixture from lathe
Go to tool room with fixture
Record replacement of fixture to tool room
Return to lathe
Clean lathe
Return to tool room
Record withdrawal of new fixture from tool room
Return to lathe
Install new fixture and turn on machine
Total setup time
15 minutes
b.
15
18
20
20
20
12
15
5
140 minutes
a. A company plans to setup a machine to increase the
productivity. The average setup time is 140 minutes. Do
you think the management needs to minimize the setup
time. Identify the reason that supports the answer.
a. Yes
b. No
Reason:
a. The setup time is not a concern of the company as it is
not related to productivity of the company.
b. The setup time should be considered because long
setup time leads to increased economic cost of the
setup.
c. The cost incurred for setup can be ignored as it is
related to machinery.
d. Long setup cost can be recovered as depreciation.
A company plans to…
Chapter 12 Solutions
Managerial Accounting
Ch. 12 - What is the benefit of the lean philosophy?Ch. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Why would a lean manufacturer strive to produce...Ch. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 1BECh. 12 - Prob. 2BECh. 12 - Prob. 3BECh. 12 - Prob. 4BECh. 12 - Prob. 5BECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Calculate lead time Williams Optical Inc. is...Ch. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Lean accounting Modern Lighting Inc. manufactures...Ch. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Process activity analysis The Brite Beverage...Ch. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Lean accounting Dashboard Inc. manufactures and...Ch. 12 - Prob. 4PACh. 12 - Prob. 1PBCh. 12 - Lead time Master Chef Appliance Company...Ch. 12 - Lean accounting Com-Tel Inc. manufactures and...Ch. 12 - Pareto chart and cost of quality report for a...Ch. 12 - Prob. 1ADMCh. 12 - Prob. 2ADMCh. 12 - Prob. 3ADMCh. 12 - Ethics in Action In August, Lannister Company...Ch. 12 - Prob. 3TIF
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