GardenPro Manufacturing produces trays for greenhouses and landscaping companies. The company focuses on delivering low-cost, high-quality products. As operating expenses have increased, management is considering streamlining its production processes to maintain competitiveness. Below is the time required to produce a batch of 2-inch seed trays: Activity Materials moved to production floor Production in station 1 Materials moved to station 2 Wait to begin at station 2 Production in station 2 Inspection Time to Complete 25 minutes 40 minutes 4 minutes 10 minutes 50 minutes 5 minutes Materials moved to finished goods inventory 5 minutes a. What is the manufacturing cycle time (throughput time) to produce a batch of 2-inch seed trays and prepare it for sale? b. How much of the processing time is value-added?

GardenPro Manufacturing produces trays for greenhouses and landscaping companies. The company focuses on delivering low-cost, high-quality products. As operating expenses have increased, management is considering streamlining its production processes to maintain competitiveness. Below is the time required to produce a batch of 2-inch seed trays: Activity Materials moved to production floor Production in station 1 Materials moved to station 2 Wait to begin at station 2 Production in station 2 Inspection Time to Complete 25 minutes 40 minutes 4 minutes 10 minutes 50 minutes 5 minutes Materials moved to finished goods inventory 5 minutes a. What is the manufacturing cycle time (throughput time) to produce a batch of 2-inch seed trays and prepare it for sale? b. How much of the processing time is value-added?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 24BEA: Mabbut Company has the following departmental manufacturing layout for one of its plants: A...

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Anderson Company has the following departmental manufacturing structure for one of its products: After some study, the production manager of Anderson recommended the following revised cellular manufacturing approach: Required: 1. Calculate the total time it takes to produce a batch of 20 units using Andersons traditional departmental structure. 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. 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?
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