5 minutes 10 minutes Wait time - 12 minutes Move and wait time = 20 minutes Cutting Welding Move and wait time = 25 minutes 8 minutes 7 minutes Move and wait time = 18 minutes Polishing Finishing A consulting firm recommended a value stream with the following manufacturing cell: 5 minutes 10 minutes Welding Cutting Polishing Finishing 8 minutes 7 minutes
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Mabbut Company has the following departmental manufacturing layout for one of its plants:
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?
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