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 Traditional Process time Inspection time 24 hours Lean 24 hours 4 hours 4 hours Move time 6 hours 3 hours Wait time 2 hours 1 hour 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 10 hours 73.68 7 hours 4. Lean approach manufacturing cycle efficiency 5. Would the proposed lean approach improve cycle efficiency? Yes 80.00
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 Traditional Process time Inspection time 24 hours Lean 24 hours 4 hours 4 hours Move time 6 hours 3 hours Wait time 2 hours 1 hour 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 10 hours 73.68 7 hours 4. Lean approach manufacturing cycle efficiency 5. Would the proposed lean approach improve cycle efficiency? Yes 80.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Can you please check my wo
Transcribed Image Text: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
Traditional
Process time
Inspection time
24 hours
Lean
24 hours
4 hours
4 hours
Move time
6 hours
3 hours
Wait time
2 hours
1 hour
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
10 hours
73.68
7 hours
4. Lean approach manufacturing cycle efficiency
5. Would the proposed lean approach improve cycle efficiency?
Yes
80.00
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education