Erba Inc. has the following departmental layout for producing an herbal supplement:
After a detailed study, the head of the plant’s industrial engineering department recommended that the following cellular manufacturing layout replace the current departmental structure:
Required:
- 1. Calculate the time required to produce a batch of 12 bottles using a batch processing departmental structure.
- 2. Calculate the time to process 12 units using cellular manufacturing.
- 3. How much manufacturing time will the cellular manufacturing structure save for a batch of 12 units?
- 4. How many units can the cell produce per hour, assuming the cell is producing on a continuous basis?
- 5. What must happen so that the cell can produce 12 units per hour, assuming the cell produces on a continuous basis?
1.
Compute the time taken to produce 12 units in case of a traditional manufacturing layout.
Answer to Problem 43E
Total time taken is 444 minutes.
Explanation of Solution
Traditional manufacturing layout:
In a traditional manufacturing layout, each process is undertaken within a separate department. In this layout large batches are processed, incurring significant wait time and move time.
Computation of time taken by 12 units:
Particulars | Minutes |
Wait time | 14 |
Add: Time taken in mixing department | 144 |
Add: Move and wait time between mixing and heating department | 15 |
Add: Time taken in heating department | 84 |
Add: Move and wait time between heating and encapsulating department | 30 |
Add: Time taken in encapsulating department | 72 |
Add: Move and wait time between encapsulating and bottling department | 25 |
Add: Time taken in bottling department | 60 |
Total time | 444 |
Table (1)
Therefore, total time taken is 444 minutes.
2.
Compute the time taken to produce 12 units in case of a cellular manufacturing layout.
Answer to Problem 43E
Total time taken to produce 12 units in cellular manufacturing is 162 minutes.
Explanation of Solution
Computation of time taken by 12 units:
Particulars | Minutes |
Time taken by first unit | 30 |
Time taken by second unit | 42 |
Time taken by twelfth unit. | 162 |
Total time | 162 |
Table (2)
Therefore, total time taken to produce 12 units in cellular manufacturing is 162 minutes.
3.
Compute the time saved in cellular manufacturing structure for a batch of 12 units.
Answer to Problem 43E
Time saved in cellular manufacturing structure for a batch of 12 units is 282 minutes.
Explanation of Solution
Computation of time saved in cellular manufacturing:
Particulars | Minutes |
Total time taken in traditional/batch processing | 444 |
Total time taken in cellular processing | 162 |
Time saved | 282 |
Table (3)
Therefore, time saved in cellular manufacturing structure for a batch of 12 units is 282 minutes.
4.
Compute the production rate in case of continuous operating.
Answer to Problem 43E
Production rate is 12 minutes per unit or 5 units per hour.
Explanation of Solution
There is a total of 12 minutes of waiting for each unit. In case, cell operates continuously and steadily, one unit would be produced after every 12 minutes. Therefore, it would take 144 minutes
Therefore, production rate is 12 minutes per unit or 5 units
5.
Explain the changes to be made so that the cell can produce 12 units per hour in case, cell produces on a continuous basis.
Answer to Problem 43E
Time taken by bottleneck activity should be 5 minutes.
Explanation of Solution
Computation of revised time taken by bottleneck activity:
Substitute 60 for minutes in an hour and 12 for the number of units required to be produced in the above formula.
The incremental time taken by each unit should be 5 minutes, in order to produce 12 units per hour on an incremental basis. For this, maximum time taken by any process should be 5 minutes.
Therefore, to produce 12 units per hour, time taken by bottleneck activity should be 5 minutes.
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Chapter 13 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
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