Chapter 24, Problem 17E

To determine

Introduction:

Manufacturing Cycle Time (MCT): Manufacturing cycle time refers to the time required in converting raw material into finished goods. It is the sum of Process time, Move time, Inspection time, and Queue time.

• Process time: This is the time required for conversion of raw materials into finished goods.

• Move time: The time during which an order moves from one workstation to the next.

• Inspection time: The time spent in examining a product to confirm quality standards.

• Queue time: The waiting time for a job in front of workstations before being processed.

Manufacturing cycle efficiency (MCE): It is the percentage of the time spent in value added activities during manufacturing process.

To Calculate:

Requirement 1: Manufacturing Cycle Time

Answer to Problem 17E

Solution:

Manufacturing Cycle Time = 50 hrs

Explanation of Solution

$\begin{array}{l}Manufacturingcycletime =Processtime+Movetime+Inspectiontime+Queuetime\hfill \\ \hfill \\ =\text{ 1}6+9+3.5+21.5=50hours\hfill \end{array}$

To determine

Requirement 2: Manufacturing Cycle Efficiency (MCE)

Answer to Problem 17E

Solution:

Manufacturing Cycle Efficiency = 32%

Explanation of Solution

$\begin{array}{l}MCE =\frac{Processtime}{Manufacturingcycletime}\hfill \\ =\frac{16}{50}=0.32=32\%\hfill \end{array}$

Conclusion

The company is spending 32% of its manufacturing cycle time in value added activities and rest 68% in no-value added activities.

To determine

Requirement 3: Increasing Manufacturing Cycle Efficiency (MCE)

Answer to Problem 17E

Solution:

The Manufacturing Cycle Efficiency can be increased to 0.8 either by increasing the process time in the given manufacturing cycle time or by decreasing the manufacturing cycle time with the given process time. Both of this option will result in decreasing the non-value added activities time.

Explanation of Solution

$MCE=\frac{ProcessTime}{Manufacturingcycletime}$

If manufacturing cycle time is same i.e; 50 hours; then the process time should be

$\begin{array}{l}Processtime =MCEXManufacturingCycletime\hfill \\ =0.8X50\hfill \\ =40hrs\hfill \end{array}$

If process time is same i.e; 16 hours; then the manufacturing cycle time should be

$\begin{array}{l}ManufacturingCycleTime =\frac{ProcessTime}{MCE}\hfill \\ =\frac{16}{0.8}/ \hfill \\ =20hours\hfill \end{array}$