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. Traditional Activity Process time Lean 28 hours 28 hours Inspection time Move time Wait time 3 hours 3 hours 4 hours 2 hours 3 hours 2 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. (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. (Round your answer to 2 decimal places.) 5. Would the proposed lean approach improve cycle efficiency? 1. Traditional approach non-value-added time 5 hours 2. Traditional approach manufacturing cycle efficiency 2.00 3. Lean approach non-value-added time 10 hours Lean approach manufacturing cycle efficiency Would the proposed lean approach improve cycle efficiency? 4. 76.90 5. 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. Traditional Activity Process time Lean 28 hours 28 hours Inspection time Move time Wait time 3 hours 3 hours 4 hours 2 hours 3 hours 2 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. (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. (Round your answer to 2 decimal places.) 5. Would the proposed lean approach improve cycle efficiency? 1. Traditional approach non-value-added time 5 hours 2. Traditional approach manufacturing cycle efficiency 2.00 3. Lean approach non-value-added time 10 hours Lean approach manufacturing cycle efficiency Would the proposed lean approach improve cycle efficiency? 4. 76.90 5. Yes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Lean
Process time
28 hours
28 hours
Inspection time
Move time
3 hours
3 hours
4 hours
2 hours
Wait time
3 hours
2 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. (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. (Round your answer to 2 decimal places.)
5. Would the proposed lean approach improve cycle efficiency?
1. Traditional approach non-value-added time
5 hours
2. Traditional approach manufacturing cycle efficiency
2.00
3.
Lean approach non-value-added time
10 hours
Lean approach manufacturing cycle efficiency
Would the proposed lean approach improve cycle
efficiency?
4.
76.90
5.
Yes
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