b6 Waymouth Manufacturing operates a contract manufacturing plant located in Dublin, Ireland. The plant provides a variety of electronicsproducts and components to consumer goods manufacturers around the world. Cycle time is a critical success factor for Waymouth,which has developed a number of measures of manufacturing speed. Waymouth has studied the matter and found that competitivecontract manufacturers have manufacturing cycle times (MCE) of about 32%. When last calculated, Waymouth's MCE was 24%Key measures from the recent month's production, averaged over all the jobs during that period, are as follows:ActivityNew product developmentMaterials handlingOrder setupMachine maintenanceOrder schedulingInspection of completed orderPack and move to storage or shipManufacturing assemblyOrder taking and checkingReceiving and stocking raw materialsInspection of raw materials at start of productionRequired:Average Time(hours)8.01.50.51.012.03.01.52.02.50.52.0Determine the manufacturing cycle efficiency (MCE) for the recent month. (Round your answer to 1 decimal place (i.e..123 = 12.3%).)Manufacturing cycle efficiency (MCE)

Step 1: Identify the Value-Added TimeThe value-added time is the time spent on the activity that…

Answered: Waymouth Manufacturing operates a…

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

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 55C

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Waymouth Manufacturing operates a contract manufacturing plant located in Dublin, Ireland. The plant provides a variety of electronics products and components to consumer goods manufacturers around the world. Cycle time is a critical success factor for Waymouth, which has developed a number of measures of manufacturing speed. Waymouth has studied the matter and found that competitive contract manufacturers have manufacturing cycle times (MCE) of about 37%. When last calculated, Waymouth's MCE was 34%. Key measures from the recent month's production, averaged over all the jobs during that period, are as follows: Activity. New product development Materials handling Order setup Machine maintenance Order scheduling Inspection of completed order Pack and move to storage or ship. Manufacturing assembly Order taking and checking Receiving and stocking raw materials Inspection of raw materials at start of production Average Time (hours) 28.0 1.5 Manufacturing cycle efficiency (MCE) 5.5 2.5…
Ellie Mosk, CEO of X-Space Industries, decided to expand the company's product offering beyond the core model rocket business. After investigation, she decided to set up a separate division to design and manufacture products for the drone market. Several companies were interested in having X-Space develop these drones, and financial results, to date, have been encouraging. Revenue was $4 million, gross margins have been running about 40%, and the customer sales and support costs were $1 million. However, there is a growing concern that some customers require a disproportionate share of the sales and support resources, and the true profitability of the customers is unknown. Data were collected to support an analysis of customer profitability: Activity Cost Driver Total Cost $ 479,000 267,000 Sales visits Sales visit days Product modifications Number of modifications Phone calls Number of minutes 92,700 169,000 $ 1,007,700 E-mail/electronic communications Number of communications Visit…
Continental Engineering Ltd manufactures three types of ceramic coffee percolator; the Silver, Gold and the Platinum models. The maximum market demand and resource requirements of each of these products are shown below. The percolators are made from an advanced heat-resistant material that gives the firm a competitive advantage. An email from the purchasing manager has informed you that, because of a problem with the supplier, it should be assumed that the half year’s supply of this special material is limited to 90,000kg. Continental operates on a just-in-time production (JIT) method so that opening and closing inventory levels are zero. The sales director has already accepted an order for 5,000 Gold percolators that, if not fulfilled, would incur a financial penalty of £10,000. This order is included in the Gold’s maximum market demand figure. Continental’s directors need to know whether they should go ahead and satisfy the contract and then prioritise production in the…
Continental Engineering Ltd manufactures three types of ceramic coffee percolator; the Silver, Gold and the Platinum models. The maximum market demand and resource requirements of each of these products are shown below. The percolators are made from an advanced heat-resistant material that gives the firm a competitive advantage. An email from the purchasing manager has informed you that, because of a problem with the supplier, it should be assumed that the half year’s supply of this special material is limited to 90,000kg. Continental operates on a just-in-time production (JIT) method so that opening and closing inventory levels are zero. The sales director has already accepted an order for 5,000 Gold percolators that, if not fulfilled, would incur a financial penalty of £10,000. This order is included in the Gold’s maximum market demand figure. Continental’s directors need to know whether they should go ahead and satisfy the contract and then prioritise production in the…
The management of International Cookwares believes that delivery performance measures must be improved if the company is to maintain its competitive edge. The following data are considered to be typical of the time to complete orders. • Process time: 4 days • Wait time to the start of production: 15 days • Move time: 3 days ● Inspection time: 2 days • Queue time during the production process: 8 days What is the delivery cycle time?
Theory of constraints, throughput margin, and relevant costs. Washington Industries manufactures electronic testing equipment. Washington also installs the equipment at customers’ sites and ensures that it functions smoothly. Additional information on the manufacturing and installation departments is as follows (capacities are expressed in terms of the number of units of electronic testing equipment): Washington manufactures only 250 units per year because the installation department has only enough capacity to install 250 units. The equipment sells for $55,000 per unit (installed) and has direct material costs of $30,000. All costs other than direct material costs are fixed. The following requirements refer only to the preceding data. There is no connection between the requirements.
Weathereye, Inc. manufactures weather satellites. The final assembly and testing of the satellites is a largely manual operation involving dozens of highly trained electronics technicians. The following learning curve has been estimated for the firm’s newest satellite model, which is about to enter production. Required:1. What will be the average labor time required to assemble and test each satellite when the company has produced four satellites? Eight satellites?2. What will be the total labor time required to assemble and test all satellites produced if the firm manufactures only four satellites? Eight satellites?3. How can the learning curve be used in the company’s budgeting process? In setting cost standards?
A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $92,000, an annual M&O cost of $31,000, and $40,000 salvage value, and it will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $124,000 per year. The company's MARR is 37% per year, and it uses a 3-year study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select. The incremental ROR is %. The manager should select robot: (Click to select) (Click to select) Y
Washington’s engineers have found a way to reduce equipment manufacturing time. The new method would cost an additional $500 per unit and would allow Washington to manufacture 30 additional units a year. Should Washington implement the new method? Show your calculations.
1. Compute the unit contribution margin for both models.
Johnson and Gomez, Inc., is a small firm involved in the production and sale of electronic business products. The company is well known for its attention to quality and innovation. During the past 15 months, a new product has been under development that allows users improved access to e- mail and video images. Johnson and Gomez code named the product the Wireless Wizard and has been quietly designing two models: Basic and Enhanced. Development costs have amounted to $204,000 and $285,000, respectively. The total market demand for each model is expected to be 55,000 units, and management anticipates being able to obtain the following market shares: Basic, 30 percent; Enhanced, 25 percent. Forecasted data follow. Projected selling price Per-unit production costs: Direct material Direct labor Variable overhead Projected selling price Per-unit production costs: Direct material Direct labor Variable overhead Marketing and advertising (fixed but avoidable) Sales commissions Basic $ 420.00…
Johnson and Gomez, Inc., is a small firm involved in the production and sale of electronic business products. The company is well known for its attention to quality and innovation. During the past 15 months, a new product has been under development that allows users improved access to e-mail and video images. Johnson and Gomez code named the product the Wireless Wizard and has been quietly designing two models: Basic and Enhanced. Development costs have amounted to $207,000 and $288,000, respectively. The total market demand for each model is expected to be 57,000 units, and management anticipates being able to obtain the following market shares: Basic, 25 percent; Enhanced, 20 percent. Forecasted data follow. Projected selling price Per-unit production costs: Direct material Direct labor Variable overhead Marketing and advertising (fixed but avoidable) Sales commissions* Problem 14-46 Part 3 Req 3A *Computed on the basis of sales dollars. Since the start of development work on the…

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