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Bienestar Inc., has the following departmental structure for producing a well-known multivitamin: A consultant designed the following cellular manufacturing structure for the same product: The times above the processes represent the time required to process one unit of product. Required: 1. Calculate the time required to produce a batch of 15 bottles using a batch-processing departmental structure. 2. Calculate the time to process 15 units using cellular manufacturing. 3. How much manufacturing time will the cellular manufacturing structure save for a batch of 15 units?

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Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663

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Chapter
Section
BuyFindarrow_forward

Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663
Chapter 15, Problem 6E
Textbook Problem
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Bienestar Inc., has the following departmental structure for producing a well-known multivitamin:

Chapter 15, Problem 6E, Bienestar Inc., has the following departmental structure for producing a well-known multivitamin: A , example  1

A consultant designed the following cellular manufacturing structure for the same product:

Chapter 15, Problem 6E, Bienestar Inc., has the following departmental structure for producing a well-known multivitamin: A , example  2

The times above the processes represent the time required to process one unit of product.

Required:

  1. 1. Calculate the time required to produce a batch of 15 bottles using a batch-processing departmental structure.
  2. 2. Calculate the time to process 15 units using cellular manufacturing.
  3. 3. How much manufacturing time will the cellular manufacturing structure save for a batch of 15 units?

1.

To determine

Compute the total time taken for the production of a batch of 15 bottles using the batch-processing departmental structure.

Explanation of Solution

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 15 bottles using the batch-processing departmental structure.

Batch Time: 
Processing time: 
Mixing (1)360 mins
Heating (2)210 mins
Tableting (3)180 mins
Bottling (4)150 mins
Total Processing Time900 mins
Move and wait time (5)80 mins
Total Batch Time980 mins

 Table (1)

Working Notes (1):

Calculate the processing time for Mixing:

Mixing  = Number of units × Process Time15 units ×24 mins=360 mins

Working Notes (2):

Calculate the processing time for Heating:

Heating  = Number of units × Process Time15 units ×14 mins=210 mins

Working Notes (3):

Calculate the processing time for Tableting:

<

2.

To determine

Compute the total time taken for the production of a batch of 15 bottles using the cellular manufacturing approach.

3.

To determine

Identify the manufacturing time saved by the cellular manufacturing approach for batch of 15 units.

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Chapter 15 Solutions

Cornerstones of Cost Management (Cornerstones Series)
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