Naner Corporation is trying to determine how long it takes for one product to pa
ID: 2354541 • Letter: N
Question
Naner Corporation is trying to determine how long it takes for one product to pass through the production process. The following information was gathered regarding how many days the product spent in various production activities:
Activity Number of days
Inspection 5
Storage 6
Assembly 3
Handling 2
Painting 3
Packaging 1
A-which of the above activities are value added?
B-What is Nanner's total cycle time?
C-Determine Nanner's manufacturing efficiency ratio?
D-If Nanner implements a total quality management program and a just in time inventory system which of the above activities could be eliminated? What would be the change in Nanner's manufacturing efficieny ratio?
Could you please show how you came up with the calculations for the answer? I must show that when submitting this assignment. Thank you so much
Explanation / Answer
A-which of the above activities are value added?
Value added activities = Assembly and Paintings
B-What is Nanner's total cycle time?
Activity Number of days
Inspection 5 days
Storage 6 days
Assembly 3 days
Handling 2 days
Painting 3 days
Packaging 1 day
Total cycle time 20 days
C. Manufacturing efficincy ratio = Value-added time/ Total Cycle time
Value-added time = 3 days in assembly + 3 days in painting = 6 days
= 6 / 20 = 30%
D-If Nanner implements a total quality management program and a just in time inventory system which of the above activities could be eliminated? What would be the change in Nanner's manufacturing efficieny ratio?
TQM will reduce 5 days in inspection
JIT will reduce 6 days in storage
Total reduction 11 days
Revised Total cycle time = 20 days - 11 days = 9 days
Revised manufacturing efficiency ratio = 6 days / 9 days = 66.67%
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