Ruiz Foods makes energy bars using a traditional manufacturing process. Raw materials are stored in inventory and then moved into production. Work in process inventory is moved across the company's three separate departments. The information below in the Traditional column is available for a recent order. If the company adopts lean manufacturing, management believes both move time and wait time can be reduced, as shown in the Lean column. Activity Lean Traditional Process time 30 hours 30 hours Inspection time 2 hours 2 hours Move time 5 hours 2 hours 3 hours 2 hours Wait time Required: 1. Compute the total amount of non-value-added time under the traditional manufacturing process. 2. Compute cycle efficiency under the traditional manufacturing process. Note: Round your answer to 2 decimal places. 3. Compute the total amount of non-value-added time under the proposed lean manufacturing process. 4. Compute cycle efficiency under the proposed lean manufacturing process. Note: Round your answer to 2 decimal places. 5. Would the proposed lean approach improve cycle efficiency? 1. Traditional approach non-value-added time 2. Traditional approach cycle efficiency 3. Lean approach non-value-added time hours hours 4. Lean approach manufacturing cycle efficiency 5. Would the proposed lean approach improve cycle efficiency? Yes
Ruiz Foods makes energy bars using a traditional manufacturing process. Raw materials are stored in inventory and then moved into production. Work in process inventory is moved across the company's three separate departments. The information below in the Traditional column is available for a recent order. If the company adopts lean manufacturing, management believes both move time and wait time can be reduced, as shown in the Lean column. Activity Lean Traditional Process time 30 hours 30 hours Inspection time 2 hours 2 hours Move time 5 hours 2 hours 3 hours 2 hours Wait time Required: 1. Compute the total amount of non-value-added time under the traditional manufacturing process. 2. Compute cycle efficiency under the traditional manufacturing process. Note: Round your answer to 2 decimal places. 3. Compute the total amount of non-value-added time under the proposed lean manufacturing process. 4. Compute cycle efficiency under the proposed lean manufacturing process. Note: Round your answer to 2 decimal places. 5. Would the proposed lean approach improve cycle efficiency? 1. Traditional approach non-value-added time 2. Traditional approach cycle efficiency 3. Lean approach non-value-added time hours hours 4. Lean approach manufacturing cycle efficiency 5. Would the proposed lean approach improve cycle efficiency? Yes
Chapter1: Accounting As A Tool For Managers
Section: Chapter Questions
Problem 10EA: For each of the activities listed, choose the manufacturing concept that applies: (i) just-in-time...
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