Walker Brothers Company is considering installing a JITmanufacturing system in t
ID: 2433863 • Letter: W
Question
Walker Brothers Company is considering installing a JITmanufacturing system in the hope that it will improve its overallprocessing cycle efficiency. Data from the traditional systemand estimates for JIT system are presented here for their NosunProduct: TimeCategory TraditionalSystem JIT System Storage 4hours 1 hour Inspection 40minutes 5minutes Moving 80minutes 20minutes Processing 2hours 75 minutes a. Calculate processing cycle efficiency (PCE) under thetraditional and JIT systems for the Nosun Product. b. Strictly based on your PCE calculations above, shouldWalker Brothers implement the JIT system. Explain? Walker Brothers Company is considering installing a JITmanufacturing system in the hope that it will improve its overallprocessing cycle efficiency. Data from the traditional systemand estimates for JIT system are presented here for their NosunProduct: TimeCategory TraditionalSystem JIT System Storage 4hours 1 hour Inspection 40minutes 5minutes Moving 80minutes 20minutes Processing 2hours 75 minutes a. Calculate processing cycle efficiency (PCE) under thetraditional and JIT systems for the Nosun Product. b. Strictly based on your PCE calculations above, shouldWalker Brothers implement the JIT system. Explain?Explanation / Answer
TraditionalSystem JIT Ssytem Storage 240 minutes 60 minutes Inspection 40 minutes 5 minutes Moving 80 minutes 20 minutes Processing 120 minutes 75 minutes Total Time 480 minutes 160 minutes Processing cycle efficiency(PCE) 120 minutes / 480 minutes 75 minutes / 160 minutes 0.250.47 0.47 _________________________________________________________________________________________
(b) Based on the calculations as shown above, Walker Brothersshould implement the JIT system.The processing cycle efficiency isalmost double than the traditional system (0.47 vs. 0.25). TraditionalSystem JIT Ssytem Storage 240 minutes 60 minutes Inspection 40 minutes 5 minutes Moving 80 minutes 20 minutes Processing 120 minutes 75 minutes Total Time 480 minutes 160 minutes Processing cycle efficiency(PCE) 120 minutes / 480 minutes 75 minutes / 160 minutes 0.25
0.47
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