Concept introduction:
Manufacturing cycle time:
Manufacturing cycle time refers to whole time of production process. In other words, we can say that total time taken from introducing raw materials till the production of final product, is known as manufacturing cycle time.
Requirement 1:
Computation of the company’s manufacturing cycle time.
Concept introduction:
Manufacturing cycle time:
Manufacturing cycle time refers to whole time of production process. In other words, we can say that total time taken from introducing raw materials till the production of final product, is known as manufacturing cycle time.
Requirement 2:
Computation of the company’s manufacturing cycle efficiency.
Concept introduction:
Manufacturing cycle time:
Manufacturing cycle time refers to whole time of production process. In other words, we can say that total time taken from introducing raw materials till the production of final product, is known as manufacturing cycle time.
Requirement 3:
Computation of the company’s cycle efficiency.
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Managerial Accounting
- Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).arrow_forwardDataSpan, Incorporated, implemented Lean Production and would like to redesign its performance measures accordingly. It has provided the following data sets: Percentage of on-time deliveries Total sales (units) Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit Required 1 Required 2 Month 1 Month 2 Month 3 Month 4 2 85% 80% 2,180 2,087 Required 3 Month Complete this question by entering your answers in the tabs below. Throughput Time days days days days 3 77% 1,980 1-a. Compute the throughput time for each month. 1-b. Compute the delivery cycle time for each month. 1-c. Compute the manufacturing cycle efficiency (MCE) for each month. Note: Round your answers to 1 decimal place. Delivery Cycle Time days days days days 0.6 2.6 31.4 6.8 0.5 Show less Aarrow_forwardManagement of Mittel Company would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: 0.3 days 14.0 days 2.7 days 1.0 days 5.0 days Inspection time Wait time (from order to start of production) Process time Move time Queue time Required: 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answers to the nearest whole percent.) 4. Compute the delivery cycle time. 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to 1 decimal place.) 9.0 days |1. Throughput time 2. Manufacturing cycle efficiency 3. Non-value-added throughput time % 70 % 4. Delivery…arrow_forward
- Management of a T-shirt manufacturer believes if the company applies lean principles, then cycle efficiency can be improved. The following are estimated completion times for different activities in the manufacturing process. Activity Cutting and sewing processing Wait time before moving to ironing Moving shirts to ironing Ironing shirts Wait time before moving to packaging Moving shirts to packaging Packaging shirts Quality inspection Activity Cycle efficiency Traditional Traditional 22 minutes 9 minutes 11 minutes 11 minutes 4 minutes 2 minutes 17 minutes. 22 minutes Compute cycle efficiency for the (a) traditional approach and (b) lean approach. Note: Round your answers to 2 decimal places. Lean Lean 22 minutes 6 minutes 7 minutes 11 minutes. 5 minutes 3 minutes 17 minutes 7 minutesarrow_forwardManagement of Mittel Company would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: Inspection time Wait time (from order to start of production) Process time Move time Queue time Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answer to nearest whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place.) 1. Throughput…arrow_forwardShalom Company produces Peace Products. The management sought your help to evaluate processes to improve the company's operation and productivity. As the accountant of the firm's parent organization, you suggested a new compensation plan based on throughput performance measure as an incentive to increase productivity. You gathered the following production data: Good units manufactured Targeted units to be manufactured Value-added processing time Processing time (total hours) Compute the manufacturing cycle efficiency. 180,000 200,000 1,152,000 1,440,000arrow_forward
- Inspection time 0.4 days Wait time (from order to start of production) 16.8 days Process time 2.8 days Move time 1.1 days Queue time 4.3 days 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. 3. What percentage of the throughput time was spent in non–value-added activities? 4. Compute the delivery cycle time. 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE?arrow_forwardProduct Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $4,800 $3,200 Variable cost of goods sold (3,020) (2,140) Manufacturing margin $1,780 $1,060 Variable selling expenses (964) (548) Contribution margin $816 $512 Fixed expenses (380) (200) Operating income $436 $312 In addition, the following sales unit volume information for the period is as follows: Conquistador 2,800 Hurricane 2,000 Sales unit volume a. Prepare a contribution margin by product report. Compute the contribution margin ratjo for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Productarrow_forwardCanfield Components produces machine parts. The average times for its largest volume product (in hours) follow: 12.02 18.41 12.70 13.22 Inspecting product Manufacturing product Storing inventory Transporting product Required: Calculate the manufacturing cycle efficiency. Note: Do not round intermediate calculations. Round your final answer to the nearest whole percent. Manufacturing cycle efficiency %arrow_forward
- The constraint at Pickrel Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: 9. VD JT SM Selling price per unit Variable cost per unit Minutes on the constraint $344.85 $415.40 $119.32 $270.18 $310.88 $ 91.96 Sklpped 5.70 6.70 1.90 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your Intermedlate calculations to 2 declmal places.) Multiple Cholce JT, SM, VD JT. VD, SM VD, SM, JT SM, VD, JT Mc Graw < Prev 9 of 9 Next 68°F Mostly cloudy Type here to search DELLarrow_forwardManagement of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: Inspection time. Wait time (from order to start of production) Process time Move time Queue time Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answer to nearest whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to 1 decimal place.) 1. Throughput time 2.…arrow_forwardA company manufactures and markets three products that are made from the same set of machines. Production is limited by machine capacity. Using the data given below, you are required to indicate the priorities for products A, B, and C with a view to maximize profits. A B C ( Cost per unit) 3.25 Raw materials (Rs.) Direct Labour (Rs.) Other Variable Cost (Rs.) Selling Price (Rs.) Standard machine Time 2.25 4.25 0.50 0.50 0.50 0.30 0.45 0.71 5.90 6.00 7.00 required (per unit) 39 minute 20 minutes 28minutes In the following year, the company faces extreme shortage of raw materials. It is noted that 3kg, 4kg, 5kg of raw materials are required to produce one unit of A. B. and C respectively. How would product priorities change".arrow_forward
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