Managerial Accounting - Connect Access
Managerial Accounting - Connect Access
7th Edition
ISBN: 9781260482973
Author: Wild
Publisher: MCG
Question
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Chapter C, Problem 3P
To determine

Concept introduction:

Cycle efficiency:

Cycle efficiency denotes about the use of cycle time in value-added activities. In other words, we can say that cycle efficiency shows relationship between value-added time and cycle time. On the basis of cycle efficiency we know about the use of whole cycle time in the value-added activities.

Requirement 1:

Non-value-added time under the traditional manufacturing process.

Expert Solution
Check Mark

Answer to Problem 3P

Non-value-added time = 4 + 6 + 2= 12 hours

Explanation of Solution

Non-value-added time = Inspection time + Move time + Wait timeInspection time = 2 hoursMove time = 6 hoursWait time = 2 hoursNow, let's put the values in above given formula;Non-value-added time = 4 + 6 + 2= 12 hours

To determine

Concept introduction:

Cycle efficiency:

Cycle efficiency denotes about the use of cycle time in value-added activities. In other words, we can say that cycle efficiency shows relationship between value-added time and cycle time. On the basis of cycle efficiency, we know about the use of whole cycle time in the value-added activities.

Requirement 2:

Cycle efficiency under the traditional manufacturing process.

Expert Solution
Check Mark

Answer to Problem 3P

Cycle efficiency = 2436= 0.67

Explanation of Solution

Cycle efficiency = Value-added timeCycle timeValue-added time = Process time Hence, value-added time = 24 hoursCycle time = Process time + Inspection time + Move time + Wait timeCycle time = 24 + 4 + 6 + 2 = 36 hoursNow, let's put the values in above given formula;Cycle efficiency = 2436= 0.67

To determine

Concept introduction:

Cycle efficiency:

Cycle efficiency denotes about the use of cycle time in value-added activities. In other words, we can say that cycle efficiency shows relationship between value-added time and cycle time. On the basis of cycle efficiency, we know about the use of whole cycle time in the value-added activities.

Requirement 3:

Non-value-added time under the proposed lean manufacturing process.

Expert Solution
Check Mark

Answer to Problem 3P

Non-value-added time = 4 + 3 + 1= 8 hours

Explanation of Solution

Non-value-added time = Inspection time + Move time + Wait timeInspection time = 4 hoursMove time = 3 hoursWait time = 1 hoursNow, let's put the values in above given formula;Non-value-added time = 4 + 3 + 1= 8 hours

To determine

Concept introduction:

Cycle efficiency:

Cycle efficiency denotes about the use of cycle time in value-added activities. In other words, we can say that cycle efficiency shows relationship between value-added time and cycle time. On the basis of cycle efficiency, we know about the use of whole cycle time in the value-added activities.

Requirement 4:

Cycle efficiency under the proposed lean manufacturing process.

Expert Solution
Check Mark

Answer to Problem 3P

Cycle efficiency = 2432= 0.75

Explanation of Solution

Cycle efficiency = Value-added timeCycle timeValue-added time = Process time Hence, value-added time = 24 hoursCycle time = Process time + Inspection time + Move time + Wait timeCycle time = 24 + 4 + 3 + 1 = 32 hoursNow, let's put the values in above given formula;Cycle efficiency = 2432= 0.75

To determine

Concept introduction:

Cycle efficiency:

Cycle efficiency denotes about the use of cycle time in value-added activities. In other words, we can say that cycle efficiency shows relationship between value-added time and cycle time. On the basis of cycle efficiency we know about the use of whole cycle time in the value-added activities.

Requirement 5:

Would the proposed lean approach improve cycle efficiency?

Expert Solution
Check Mark

Answer to Problem 3P

Yes, the proposed lean approach would improve cycle efficiency.

Explanation of Solution

Cycle efficiency under the traditional manufacturing process = 2436= 0.67Cycle efficiency under the proposed lean manufacturing process = 2432= 0.75Thus, it is clear that the proposed lean approach would improve cycle efficiency because cycle efficiency is higher under proposed lean approach.

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