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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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Erba Inc. has the following departmental layout for producing an herbal supplement:

Chapter 13, Problem 43E, Erba Inc. has the following departmental layout for producing an herbal supplement: After a detailed , example  1

After a detailed study, the head of the plant’s industrial engineering department recommended that the following cellular manufacturing layout replace the current departmental structure:

Chapter 13, Problem 43E, Erba Inc. has the following departmental layout for producing an herbal supplement: After a detailed , example  2

Required:

  1. 1. Calculate the time required to produce a batch of 12 bottles using a batch processing departmental structure.
  2. 2. Calculate the time to process 12 units using cellular manufacturing.
  3. 3. How much manufacturing time will the cellular manufacturing structure save for a batch of 12 units?
  4. 4. How many units can the cell produce per hour, assuming the cell is producing on a continuous basis?
  5. 5. What must happen so that the cell can produce 12 units per hour, assuming the cell produces on a continuous basis?

1.

To determine

Compute the time taken to produce 12 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 12 units:

ParticularsMinutes
Wait time14
Add: Time taken in mixing department (12minutes×12units)144
Add: Move and wait time between mixing and heating department15
Add: Time taken in heating department (7minutes×12

2.

To determine

Compute the time taken to produce 12 units in case of a cellular manufacturing layout.

3.

To determine

Compute the time saved in cellular manufacturing structure for a batch of 12 units.

4.

To determine

Compute the production rate in case of continuous operating.

5.

To determine

Explain the changes to be made so that the cell can produce 12 units per hour in case, cell produces on a continuous basis.

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