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Manner Corporation is trying to determine how long it takes for one product to p

ID: 2354794 • Letter: M

Question

Manner 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 = Inspection...Number of days = 5... Activity = Storage ... Number of days = 6..... Activity = Assembly... Number of days = 3... Activity = Handling... Number of days = 2... Activity = Painting... Number of days = 3 ..... Activity = Packaging..... Number of days = 1 ...... a. Which of the above activities is value added?..... b. What is Manner

Explanation / Answer

(a) Value added activity - Assembly, Painting, packaging Non-value added activity - Inspection, storage, handling (b) Total cycle time = 5 + 6 + 3 + 2 + 3 + 1 = 20 days (c) Total value added time = 3 + 3 + 1 = 7 days Manner’s manufacturing efficiency ratio = 7/20 x 100 = 35% (d) By implementing the system, storage and handling time can be eliminated. Total cycle time = 20 - 2 - 6 = 12 days This will result in the new manufacturing efficiency ratio be 7/12 x 10% = 58.3% Hope this helps!

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