Chapter D, Problem 6E

To determine

Manufacturing Cycle Time:

The time taken from ordering raw material inventory to putting it in manufacturing production process to producing the finished goods . this can be categorized into following components as below

1. Process Time : The actual time taken in processes where the raw material is converted into finished goods . This is also called value added activity which can be reduced by using various techniques like kaizen which is continuous improvement technique
2. Inspection Time : The time taken for inspection of quality of raw material , work in process at different process end and finished goods . This is part of non value added activity
3. Move Time : The time taken for movement of raw material and work in process goods and people between different process . This is part of non value added activity
4. Wait time : The time taken between getting the production order and ordering the raw material inventory and actual arrival at production floor and during the process . This is part of non value added activity

The formula to calculate manufacturing cycle time is given below

  $\begin{array}{l}\text{Manufacturing Cycle time = (Process Time + Inspection Time + Move time + Wait Time)}\\ \end{array}$

Manufacturing Cycle Efficiency:

This is ratio which calculated the total time spend on value added activity from the total manufacturing cycle time and is represented in percentage terms

The formula to calculate manufacturing cycle efficiency is given below

$\text{Manufacturing Cycle Efficiency = (Value added activity /Total manufacturing cycle time) x 100}$

The manufacturing cycle time

The manufacturing cycle time is 15 days

Following information is given

• Process time is 6.0 days is also value added activity time
• Inspection time is 0.8 days
• Move time is 3.2 days
• Wait time is 5.0 days

The formula to calculate manufacturing cycle time is given below

  $\begin{array}{l}\text{Manufacturing Cycle time = (Process Time + Inspection Time + Move time + Wait Time)}\\ \text{Manufacturing Cycle time = (6 days + 0}\text{.8 days + 3}\text{.2 days + 5 days)}\\ \text{Manufacturing Cycle time = 15 days}\\ \end{array}$

The manufacturing cycle time is 15 days

The manufacturing cycle efficiency

The manufacturing cycle efficiency is 40%

Following information is given

• Process time is 6.0 days also value added activity time
• Inspection time is 0.8 days
• Move time is 3.2 days
• Wait time is 5.0 days

The formula to calculate manufacturing cycle time is given below

  $\begin{array}{l}\text{Manufacturing Cycle time = (Process Time + Inspection Time + Move time + Wait Time)}\\ \text{Manufacturing Cycle time = (6 days + 0}\text{.8 days + 3}\text{.2 days + 5 days)}\\ \text{Manufacturing Cycle time = 15 days}\\ \end{array}$

The formula to calculate manufacturing cycle efficiency is given below

$\begin{array}{l}\text{Manufacturing Cycle Efficiency = (Value added activity /Total manufacturing cycle time) x 100}\\ \text{Manufacturing Cycle Efficiency = (6 /15) x 100}\\ \text{Manufacturing Cycle Efficiency = 0}\text{.40 x 100}\\ \text{Manufacturing Cycle Efficiency = 40\%}\end{array}$

The manufacturing cycle efficiency is 40% which shows 60% time is spend on non value added activities which should be reduced to bring more efficiency in the production process and resulting in faster delivery to customer

The revised manufacturing cycle efficiency

The revised manufacturing cycle efficiency is 54.55%

Following information is given

• Process time is 6.0 days also value added activity time
• Inspection time is 0.8 days
• Revised Move time is 2 days
• Revised Wait time is 2.2 days

The formula to calculate manufacturing cycle time is given below

  $\begin{array}{l}\text{Manufacturing Cycle time = (Process Time + Inspection Time + Move time + Wait Time)}\\ \text{Manufacturing Cycle time = (6 days + 0}\text{.8 days + 2 days + 2}\text{.2 days)}\\ \text{Manufacturing Cycle time = 11 days}\\ \end{array}$

The formula to calculate manufacturing cycle efficiency is given below

$\begin{array}{l}\text{Manufacturing Cycle Efficiency = (Value added activity /Total manufacturing cycle time) x 100}\\ \text{Manufacturing Cycle Efficiency = (6 /11) x 100}\\ \text{Manufacturing Cycle Efficiency = 0}\text{.5455 x 100}\\ \text{Manufacturing Cycle Efficiency = 54}\text{.55\%}\end{array}$

The manufacturing cycle efficiency has increased to 54.55% which shows reduction in non value added activities to 45.45% from previous non value added activities of 60% . Which has brought more efficiency in the production process and resulting in faster delivery to customer?