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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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Mabbut Company has the following departmental manufacturing layout for one of its plants:

Chapter 13, Problem 24BEA, Mabbut Company has the following departmental manufacturing layout for one of its plants: A , example  1

A consulting firm recommended a value stream with the following manufacturing cell:

Chapter 13, Problem 24BEA, Mabbut Company has the following departmental manufacturing layout for one of its plants: A , example  2

Required:

  1. 1. Calculate the total time it takes to produce a batch of 10 units using the traditional departmental manufacturing layout.
  2. 2. Using cellular manufacturing, how much time is saved producing the same batch of 10 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate?
  3. 3. Assume the processing time of Welding is reduced to 6 minutes, while the times of the other processes stay the same. What is the production rate now, and how long will it take to produce a batch of 10 units if the cell is in a continuous production mode?

1.

To determine

Compute the time taken to produce 10 units in case of a traditional manufacturing layout.

Explanation

Traditional Manufacturing Layout:

In a traditional manufacturing layout, each process is undertaken within a separate department. In this layout large batches are processed, incurring significant wait time and move time.

Computation of time taken by 10 units:

ParticularsMinutes
Wait time12
Add: Time taken in cutting department (5minutes×10units)50
Add: Move and wait time between cutting and welding department20
Add: Time taken in welding department (10minutes×10

2.

To determine

Compute the time saved to produce 10 units in case of a cellular manufacturing layout. Compute the production rate in case of continuous operating. Also, identify the process that controls this production rate.

3.

To determine

Re-compute the production rate in case,the welding time is reduced to 6 minutes. Also, compute the time taken by 10 units to complete.

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