Lead Time Rough Riders Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in 50-jean batch sizes. The cutting time is 6 minutes per jean. The sewing time is 15 minutes per jean. It takes 5 minutes to move a batch of jeans from cutting to sewing. a. Compute the value-added, non-value-added, and total lead time of this process. Value-added lead time minutes Non-value-added lead time minutes Total lead time minutes b. Compute the value-added ratio. Round to one decimal place. %
Q: MCE Craig, Inc., has provided the following information for one of its products for each hour of…
A: Actual velocity: 200 units (per hour) Move time: 11 minutes Inspection time: 12 minutes Rework…
Q: Hayden Co. manufactures baseball caps that sell for $40 each. Each cap uses $14 in direct materials…
A: Given that , Selling price = $ 40 p.u. Direct material = $15 p.u. Direct labor = $5 p.u. cutting…
Q: Required information [The following information applies to the questions displayed below] Iguana,…
A:
Q: An order for 50 of a product is processed on work centers A and B. The setup time on A is 45…
A: Manufacturing lead time: Manufacturing lead time specifies how much time it takes to complete a…
Q: A value stream has three activities and two products. The units produced and shipped per week are 50…
A: Activity based costing system: It is precise method of allocation of overhead to the products. Under…
Q: Blues Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in 40-jean…
A: Value-added lead time is the end consequence of all the valuable efforts to complete the process.…
Q: Use the following infonnation for Exercises 5-44 through 5-46: The following sixsituations at…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. A…
Q: Gumbrecht Company has the following departmental manufacturing layout for one of its plants: 12…
A: 1.
Q: A manufacturer makes T-shirts in several processes. Information on the components of cycle time…
A:
Q: budgeted sales revenue 2 budgeted production in units 3 budgeted cost of direct…
A:
Q: Morrison Manufacturing produces casings for sewing machines: large and small. To produce the…
A: Answer: As per given - Morrison Manufacturing produces casings for sewing machines: large and small.…
Q: Rough Riders Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in…
A: a. Value-added time = Cutting time + Sewing time = 6 + 15 = 21…
Q: Wood Creations designs, manufactures, and sells modern wood sculptures. Sally Jensen is an artist…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Calculate MCE. Comment on its significance.
A:
Q: 1. ABC Co. manufactures desks in the finishing and assembly process. Desks are manufactured in 20…
A: Value added time is the actual time taken for the improvement or progression of the product or it is…
Q: Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional…
A: Working: 1. Value added time = Minutes in milling + Minutes in finishing…
Q: Christmas Express makes wreaths in batch sizes of 34. The cutting and assembly process takes 5…
A: Value aded time is defined as the time spent which improves the process outcome. It is generally the…
Q: Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three…
A: Contribution margin per unit is the excess of sales value per unit over variable cost per unit.
Q: Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under…
A: Lead time is the amount of time that passes from the start of a process until its conclusion. Lead…
Q: Woodland Corporation has developed the following activity cost information for its manufacturing…
A: Activity cost is the method of costing which identifies the activities in the organization as well…
Q: George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots.…
A: Total cost is calculated by multiplying total units into fixed cost and variables cost.
Q: Carlton's Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to…
A: Particulars Strands Shapes Direct Materials $8 $12 Direct labour $75 $50 Manufacturing…
Q: Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the…
A: The question is based on the concept of Cost Accounting.
Q: George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots.…
A: Cost management also correlates to life-cycle budgeting on how it associated with cost management…
Q: Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and…
A: Budgets are the estimates that are being made for the purpose of forecasting the future revenues and…
Q: Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the…
A: Contribution margin per constrained resource = contribution margin per pair x (60 minutes / minutes…
Q: A company has provided the following information for one of its products for each hour of…
A: Given data, Actual velocity =100 units (per hour) Move time = 20 minutes Inspection time=15 minutes…
Q: Ceso Corporation manufactures and sells custom snowmobiles. From the time an order is placed till…
A: Manufacturing cycle efficiency (also known as MCE) measures the proportion of time being spent on…
Q: Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder)…
A: Budgeted cell conversion cost per hour = Budgeted conversion cost for the year /Total production…
Q: Shorts Manufacturing, Inc., has implemented lean manufacturing in its Kansas City plant as a pilot…
A:
Q: Robo-Lawn is a lean manufacturer of robotic lawn mowers. Each mower requires $250 of raw materials.…
A: 1. Compute the conversion cost rate per mower.
Q: Al-Sabri Company manufactures and sells three styles of kitchen faucets: Brass, Chrome, and White.…
A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…
Q: George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots.…
A: The least-squares regression method is one of the techniques which is used to separate the fixed…
Q: Developing raw material cost standards Lakeway Manufacturing Co.manufactures and sells household…
A:
Q: Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the…
A: Total cost is the total amount of money spent to produce some form of result. Accounting-wise, the…
Q: IPort Products makes cases for portable music players in two processes, cutting and sewing. The…
A: Variable manufacturing cost is the manufacturing cost which changes with the change in the output…
Q: Best Ink produces printers for personal computers. The following information is available for…
A: 1. Compute the company’s manufacturing cycle time. Manufacturing cycle time = process time +…
Q: Blues Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in 40-jean…
A: Value-added time = Cutting time + Sewing time = 5 + 20 = 25…
Q: Lead time includes ___, ___, and ___. Value-added time, wait time and other non-value-added time.…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: od Creations designs, manufactures, and sells modern wood sculptures. Sally Jense rtist for the…
A: Answer 2) Total cost 148000 Less: reduction in direct material cost(30000*50%) (15000) Add:…
Q: makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a…
A: A.What is the per-unit cost for each product under the traditional allocation method? Particulars.…
Q: Oak Valley Company, a custom cabinet manufacturing company, is setting standard costs for one of…
A: The question is based on the concept of Cost Accounting.
Q: Specialty Metal Products, Inc. manufactures filters for use in custom over-the-range hoods. The…
A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS Cost to make filters 100000 Cost to…
Q: Christmas Express makes wreaths in batch sizes of 14. The cutting and assembly process takes 6…
A: Given; Batch size = 14 Cutting and assembling per wreath = 6 minutes Decorating process time = 15…
Q: A manufacturer of thermostats uses a kanban system tocontrol the fl ow of materials. Th e packaging…
A: Kanban (Japanese for sign) seems to be a technique of stock control being used just-in-time (JIT)…
Q: D-alcohol is an alcohol factory in Kyoto. The most popular products of D-alcohol are A, B, C, and D,…
A: Considering a 8 hour run cycle for the production line for all the four products .The batch size,…
Q: Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Lead Time
Rough Riders Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in 50-jean batch sizes. The cutting time is 6 minutes per jean. The sewing time is 15 minutes per jean. It takes 5 minutes to move a batch of jeans from cutting to sewing.
a. Compute the value-added, non-value-added, and total lead time of this process.
| Value-added lead time | minutes |
| Non-value-added lead time | minutes |
| Total lead time | minutes |
b. Compute the value-added ratio. Round to one decimal place.
%
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Calculate lead time Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 45 units. The process time for each step is as follows: The time required to move each batch between steps is 5 minutes. In addition, the time to move raw materials to Process Step 1 is also 5 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 5 minutes. The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the (A) present and (B) proposed production approaches. (Round percentages to one decimal place.)Eyring Manufacturing produces a component used in its production of washing machines. The time to set up and produce a batch of the components is two days. The average daily usage is 800 components, and the maximum daily usage is 875 components. Required: Compute the reorder point assuming that safety stock is carried by Eyring Manufacturing. How much safety stock is carried by Eyring?Mabbut Company has the following departmental manufacturing layout for one of its plants: A consulting firm recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of 10 units using the traditional departmental manufacturing layout. 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. 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?
- Use the following information for Exercises 5-44 through 5-46: The following six situations at Diviney Manufacturing Inc. are independent. a. A manual insertion process takes 30 minutes and 8 pounds of material to produce a product. Automating the insertion process requires 15 minutes of machine time and 7.5 pounds of material. The cost per labor hour is 12, the cost per machine hour is 8, and the cost per pound of materials is 10. b. With its original design, a gear requires 8 hours of setup time. By redesigning the gear so that the number of different grooves needed is reduced by 50%, the setup time is reduced by 75%. The cost per setup hour is 50. c. A product currently requires 6 moves. By redesigning the manufacturing layout, the number of moves can be reduced from 6 to 0. The cost per move is 20. d. Inspection time for a plant is 16,000 hours per year. The cost of inspection consists of salaries of 8 inspectors, totaling 320,000. Inspection also uses supplies costing 5 per inspection hour. The company eliminated most defective components by eliminating low-quality suppliers. The number of production errors was reduced dramatically by installing a system of statistical process control. Further quality improvements were realized by redesigning the products, making them easier to manufacture. The net effect was to achieve a close to zero-defect state and eliminate the need for any inspection activity. e. Each unit of a product requires 6 components. The average number of components is 6.5 due to component failure, requiring rework and extra components. Developing relations with the right suppliers and increasing the quality of the purchased component can reduce the average number of components to 6 components per unit. The cost per component is 500. f. A plant produces 100 different electronic products. Each product requires an average of 8 components that are purchased externally. The components are different for each part. By redesigning the products, it is possible to produce the 100 products so that they all have 4 components in common. This will reduce the demand for purchasing, receiving, and paying bills. Estimated savings from the reduced demand are 900,000 per year. 5-46 Type of Activity Management Refer to the information for Diviney Manufacturing on the previous page. Required: For each situation, identify the cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection.Use the following information for Exercises 5-44 through 5-46: The following six situations at Diviney Manufacturing Inc. are independent. a. A manual insertion process takes 30 minutes and 8 pounds of material to produce a product. Automating the insertion process requires 15 minutes of machine time and 7.5 pounds of material. The cost per labor hour is 12, the cost per machine hour is 8, and the cost per pound of materials is 10. b. With its original design, a gear requires 8 hours of setup time. By redesigning the gear so that the number of different grooves needed is reduced by 50%, the setup time is reduced by 75%. The cost per setup hour is 50. c. A product currently requires 6 moves. By redesigning the manufacturing layout, the number of moves can be reduced from 6 to 0. The cost per move is 20. d. Inspection time for a plant is 16,000 hours per year. The cost of inspection consists of salaries of 8 inspectors, totaling 320,000. Inspection also uses supplies costing 5 per inspection hour. The company eliminated most defective components by eliminating low-quality suppliers. The number of production errors was reduced dramatically by installing a system of statistical process control. Further quality improvements were realized by redesigning the products, making them easier to manufacture. The net effect was to achieve a close to zero-defect state and eliminate the need for any inspection activity. e. Each unit of a product requires 6 components. The average number of components is 6.5 due to component failure, requiring rework and extra components. Developing relations with the right suppliers and increasing the quality of the purchased component can reduce the average number of components to 6 components per unit. The cost per component is 500. f. A plant produces 100 different electronic products. Each product requires an average of 8 components that are purchased externally. The components are different for each part. By redesigning the products, it is possible to produce the 100 products so that they all have 4 components in common. This will reduce the demand for purchasing, receiving, and paying bills. Estimated savings from the reduced demand are 900,000 per year. 5-44 Nonvalue-Added Costs Refer to the information for Diviney Manufacturing on the previous page. Required: Estimate the nonvalue-added cost for each situation.Gumbrecht Company has the following departmental manufacturing layout for one of its plants: A consulting firm has recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of 20 units using the traditional departmental manufacturing layout. 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. Assume the processing time of Casting is reduced to 9 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 20 units if the cell is in a continuous production mode?
- Use the following information for Exercises 5-44 through 5-46: The following six situations at Diviney Manufacturing Inc. are independent. a. A manual insertion process takes 30 minutes and 8 pounds of material to produce a product. Automating the insertion process requires 15 minutes of machine time and 7.5 pounds of material. The cost per labor hour is 12, the cost per machine hour is 8, and the cost per pound of materials is 10. b. With its original design, a gear requires 8 hours of setup time. By redesigning the gear so that the number of different grooves needed is reduced by 50%, the setup time is reduced by 75%. The cost per setup hour is 50. c. A product currently requires 6 moves. By redesigning the manufacturing layout, the number of moves can be reduced from 6 to 0. The cost per move is 20. d. Inspection time for a plant is 16,000 hours per year. The cost of inspection consists of salaries of 8 inspectors, totaling 320,000. Inspection also uses supplies costing 5 per inspection hour. The company eliminated most defective components by eliminating low-quality suppliers. The number of production errors was reduced dramatically by installing a system of statistical process control. Further quality improvements were realized by redesigning the products, making them easier to manufacture. The net effect was to achieve a close to zero-defect state and eliminate the need for any inspection activity. e. Each unit of a product requires 6 components. The average number of components is 6.5 due to component failure, requiring rework and extra components. Developing relations with the right suppliers and increasing the quality of the purchased component can reduce the average number of components to 6 components per unit. The cost per component is 500. f. A plant produces 100 different electronic products. Each product requires an average of 8 components that are purchased externally. The components are different for each part. By redesigning the products, it is possible to produce the 100 products so that they all have 4 components in common. This will reduce the demand for purchasing, receiving, and paying bills. Estimated savings from the reduced demand are 900,000 per year. 5-45 Driver Analysis Refer to the information for Diviney Manufacturing on the previous page. Required: CONCEPTUAL CONNECTION For each situation, identify the possible root cause(s) of the activity cost (such as plant layout, process design, and product design).Assume that at the beginning of 20x2, Cicleta trained the 2 assembly workers in a new approach that had the objective of increasing the efficiency of the assembly process. Cicleta also began moving toward a JIT purchasing and manufacturing system. When JIT is fully implemented, the demand for expediting is expected to be virtually eliminated. It is expected to take two to three years for full implementation. Assume that receiving cost is a step-fixed cost with steps of 1,500 orders. The other three activities employ resources that are acquired as used and needed. At the end of 20x2, the following results were reported for the four activities: Required: 1. Prepare a trend report that shows the non-value-added costs for each activity for 20x1 and 20x2 and the change in costs for the two periods. Discuss the reports implications. 2. Explain the role of activity reduction for receiving and for expediting. What is the expected value of SQ for each activity after JIT is fully implemented? 3. What if at the end of 20x2, the selling price of a competing product is reduced by 27 per unit? Assume that the firm produces and sells 20,000 units of its product and that its product is associated only with the four activities being considered. By virtue of the waste-reduction savings, can the competitors price reduction be matched without reducing the unit profit margin of the product that prevailed at the beginning of the year? If not, how much more waste reduction is needed to achieve this outcome? In this case, what price decision would you recommend?Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?
- Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. If it is assumed that Rough Stuff has 4,800 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how much will profits increase f 100 more hours of machine time can be obtained?Pratt Company produces two replacement parts for a popular line of Blu-ray disc players: Part A and Part B. Part A is made up of two components, one manufactured internally and one purchased from external suppliers. Part B is made up of three components, one manufactured internally and two purchased from suppliers. The company has two processes: fabrication and assembly. In fabrication, the internally produced components are made. Each component takes 20 minutes to produce. In assembly, it takes 30 minutes to assemble the components for Part A and 40 minutes to assemble the components for Part B. Pratt Company operates one shift per day. Each process employs 100 workers who each work eight hours per day. Part A earns a unit contribution margin of 20, and Part B earns a unit contribution margin of 24 (calculated as the difference between revenue and the cost of materials and energy). Pratt can sell all that it produces of either part. There are no other constraints. Pratt can add a second shift of either process. Although a second shift would work eight hours, there is no mandate that it employ the same number of workers. The labor cost per hour for fabrication is 15, and the labor cost per hour for assembly is 12. Required: 1. Identify the constraints facing Pratt, and graph them. How many binding constraints are possible? What is Pratts optimal product mix? What daily contribution margin is produced by this mix? 2. What is the drummer constraint? How much excess capacity does the other constraint have? Assume that a 1.5-day buffer inventory is needed to deal with any production interruptions. Describe the drum-buffer-rope concept using the Pratt data to illustrate the process. 3. Explain why the use of local labor efficiency measures will not work in Pratts TOC environment. 4. Suppose Pratt decides to elevate the binding constraint by adding a second shift of 50 workers (labor rates are the same as those of the first shift). Would elevation of Pratts binding constraint improve its system performance? Explain with supporting computations.Sports Butts makes basketballs and footballs in a three-step process. Unfortunately, the stern insertion process has been identified as a bottleneck. Each basketball has a contribution margin of $15.00 and each football has a contribution margin of $4.00. The stem insertion equipment can make 10 basketballs or 30 footballs in one hour. A. If demand for both products is unlimited and the stem insertion machine capacity cannot be expanded, which product should be produced? B. It demand for each ball is limited to 9,000 balls and there are 4,000 hours available on the machine, how many of each product should be produced?
