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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

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BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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A manufacturing cell within a value stream has three processes and the following associated processing times:

Drilling: 12 minutes

Inserting: 6 minutes

Finishing: 2 minutes

How many units can the cell produce per hour (on a continuous running basis)?

  1. a. 10 units per hour
  2. b. 3 units per hour
  3. c. 5 units per hour
  4. d. 30 units per hour

To determine

Identify the number of units that can be processed per hour in a manufacturing cell within a value stream having three processes.

Explanation

Value Stream:

Value stream consists of the processes through which a product goes; that is from procurement to delivery. In value stream, all processes are covered whether or not they add value to the product.

c.

On a continuous running basis, time taken by one unit would be computed by using the bottleneck process. Number of units that can be processed are 5 (6012) in an hour, assuming that other processes taking 6 and 2 minutes are running simultaneously. Therefore, this is the correct option.

a.

A unit would require at least 12 minutes for drilling and consequently no more than 5 units (6012) could be produced in an hour

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