CengageNOWv2, 1 term Printed Access Card for Hansen/Mowen’s Cornerstones of Cost Management, 4th
CengageNOWv2, 1 term Printed Access Card for Hansen/Mowen’s Cornerstones of Cost Management, 4th
4th Edition
ISBN: 9781305970762
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Chapter 15, Problem 1CE

Anderson Company has the following departmental manufacturing structure for one of its products:

Chapter 15, Problem 1CE, Anderson Company has the following departmental manufacturing structure for one of its products: , example  1

After some study, the production manager of Anderson recommended the following revised cellular manufacturing approach:

Chapter 15, Problem 1CE, Anderson Company has the following departmental manufacturing structure for one of its products: , example  2

Required:

  1. 1. Calculate the total time it takes to produce a batch of 20 units using Anderson’s traditional departmental structure.
  2. 2. Using cellular manufacturing, how much time is saved producing the same batch of 20 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate?
  3. 3. What if the processing times of molding, welding, and assembly are all reduced to six minutes each? What is the production rate now, and how long will it take to produce a batch of 20 units?

1.

Expert Solution
Check Mark
To determine

Compute the total time taken for the production of a batch of 20 units using the traditional departmental structure.

Explanation of Solution

Traditional departmental structure: The traditional departmental structure refers to the conventional manufacturing approach, wherein the manufacturing is a process which includes lots of lead time.

Compute the total time taken for the production of a batch of 20 units using the traditional departmental structure.

Batch Time: 
Processing time: 
Molding (1)150 mins
Welding (2)300 mins
Polishing (3)240 mins
Assembly (4)140 mins
Total Processing Time830 mins
Move and wait time (5)75 mins
Total Batch Time905 mins

 Table (1)

Working Notes (1):

Calculate the processing time for Molding:

Molding  = Number of units × Process Time20 units ×7.5 mins=150 mins

Working Notes (2):

Calculate the processing time for Welding:

Welding  = Number of units × Process Time20 units ×15 mins=300 mins

Working Notes (3):

Calculate the processing time for Polishing:

Polishing  = Number of units × Process Time20 units ×12mins=240 mins

Working Notes (4):

Calculate the processing time for Assembly:

Assembly  = Number of units × Process Time20 units ×7 mins=140 mins

Working Notes (5):

Calculate the Move and wait time:

Move andwait time}(Move and wait time for Molding + Move and wait time for Welding + Move and wait time for Polishing + Move and wait time for Assembly)= 15 mins  + 18 mins + 22.5 mins + 19.5 mins=75 mins

2.

Expert Solution
Check Mark
To determine

Compute the total time taken for the production of a batch of 20 units using the cellular manufacturing approach and the production rate if it’s a continuous production and identify the process which controls the production rate.

Explanation of Solution

Cellular manufacturing: The cellular manufacturing refers to the manufacturing approach, wherein the various equipments related to the various processes of production are clustered together to avoid any move time and enable faster manufacturing of the goods.

Compute the total time taken for the production of a batch of 20 units using the cellular manufacturing.

Batch Time: 
Processing time: 
For First Unit45 mins
Second unit60 mins
Third Unit75 mins
Fourth unit90 mins
Fifth Unit105 mins
Sixth unit120 mins
Seventh Unit135 mins
Eighth unit150 mins
Ninth Unit165 mins
Tenth unit180 mins
Eleventh Unit195 mins
Twelfth unit210 mins
Thirteenth Unit225 mins
Fourteenth Unit240 mins
Fifteenth Unit255 mins
Sixteenth Unit270 mins
Seventeenth Unit285 mins
Eighteenth Unit300 mins
Nineteenth Unit315 mins
Twentieth Unit330 mins
Total Processing Time330 mins

 Table (2)

The total processing time of 1 unit is 45 minutes (refer Working Notes (6)). The production of the second unit starts once in every fifteen minutes, so that the production process can go on without stopping in middle. Thus 15 mins is added to the processing time of previous every unit, to get the processing time of the present unit.

The production time for a batch of 20 units using cellular manufacturing is 330 mins. The production of 20 units under the traditional departmental structure has a production time is 905 mins. Hence, the total production time saved using the cellular manufacturing approach is 605 mins (905 mins300 mins).

The production rate uses the processing time of the process with the longest processing time, thus the Welding process with 15 mins processing time is used.

The new Production rate is 4 units per hour (60 mins15 mins).

The production of every unit starts once in fifteen minutes and for 20 units the production time is 300 mins (20 units4 units ×60 mins).

The production starts once in every fifteen minutes, as Welding process takes 15 mins to be completed and is the bottleneck process in the production, as it controls the production rate.

Working Notes (6):

Calculate the total Processing time:

Processing time = (Processing time for Molding + Processing time for Welding + Processing time for Polishing + Processing time for Assembly)= 15 mins  + 7.5 mins + 12 mins + 10.5 mins=45 mins

3.

Expert Solution
Check Mark
To determine

Identify the new processing time and the production rate if the processing time for welding, molding and assembly are reduced by 6 minutes each.

Explanation of Solution

The production rate uses the processing time of the process with the longest processing time, thus the Polishing process with 12 mins processing time is used.

The new Production rate is 5 units per hour(60 mins12 mins).

The production of every unit starts once in twelve minutes and for 20 units the production time is 240 mins(20 units5 units ×60 mins).

Compute the new total processing time for the production of a batch of 20.

Batch Time: 
Processing time: 
For First Unit27 mins
Second unit39 mins
Third Unit51 mins
Fourth unit63 mins
Fifth Unit75 mins
Sixth unit87 mins
Seventh Unit99 mins
Eighth unit111 mins
Ninth Unit123 mins
Tenth unit135 mins
Eleventh Unit147 mins
Twelfth unit159 mins
Thirteenth Unit171 mins
Fourteenth Unit183 mins
Fifteenth Unit195 mins
Sixteenth Unit207 mins
Seventeenth Unit219 mins
Eighteenth Unit231 mins
Nineteenth Unit243 mins
Twentieth Unit255 mins
Total Processing Time255 mins

 Table (3)

The total processing time of 1 unit is 27 minutes (refer Working Notes (7)). The production of the second unit starts once in every twelfth minutes, so that the production process can go on without stopping in middle. Thus 12 mins is added to the processing time of previous every unit, to get the processing time of the present unit.

The production time for a batch of 20 units using cellular manufacturing is 255 mins.

Working Notes (7):

Calculate the total Processing time:

Processing time = (Processing time for Molding + Processing time for Welding + Processing time for Polishing + Processing time for Assembly)= 9 mins  + 1.5 mins + 12 mins + 4.5 mins=27 mins

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Chapter 15 Solutions

CengageNOWv2, 1 term Printed Access Card for Hansen/Mowen’s Cornerstones of Cost Management, 4th

Ch. 15 - When will the average unit cost be useful for...Ch. 15 - Explain why changes in value-stream profitability...Ch. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - What is productivity measurement?Ch. 15 - Prob. 16DQCh. 15 - Prob. 17DQCh. 15 - Discuss the advantages and disadvantages of...Ch. 15 - Prob. 19DQCh. 15 - Prob. 20DQCh. 15 - What is profit-linked productivity measurement and...Ch. 15 - Prob. 22DQCh. 15 - What is the price-recovery component?Ch. 15 - Anderson Company has the following departmental...Ch. 15 - During the week of June 12, Harrison Manufacturing...Ch. 15 - In 20x2, Choctaw Company implements a new process...Ch. 15 - Refer to Cornerstone Exercise 15.3. Choctaw...Ch. 15 - Prob. 5ECh. 15 - Bienestar Inc., has the following departmental...Ch. 15 - Bienestar, Inc., implemented cellular...Ch. 15 - Henderson, Inc., has just created five order...Ch. 15 - Prob. 9ECh. 15 - Shorts Manufacturing, Inc., has implemented lean...Ch. 15 - The following Box Scorecard was prepared for a...Ch. 15 - Prob. 12ECh. 15 - Carsen Company produces handcrafted pottery that...Ch. 15 - Helena Company needs to increase its profits and...Ch. 15 - Helena Company needs to increase its profits and...Ch. 15 - Prob. 16ECh. 15 - Lean manufacturing is characterized by all but one...Ch. 15 - Lean manufacturing uses value streams to produce a...Ch. 15 - A manufacturing cell within a value stream is...Ch. 15 - Total productive efficiency is achieved when both...Ch. 15 - The following information is given for a...Ch. 15 - Sixty employees (all CPAs) of a local public...Ch. 15 - Sixty employees (all CPAs) of a local public...Ch. 15 - Bradford Company, a manufacturer of small tools,...Ch. 15 - Continuous improvement is the governing principle...Ch. 15 - Prob. 26PCh. 15 - Jadlow Company produces handcrafted leather...Ch. 15 - Prob. 28P
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