calls from customers complaining about the length of time it takes to receive an
ID: 2524147 • Letter: C
Question
calls from customers complaining about the length of time it takes to receive an order. To help him understand LaCrosse, Inc., sales manager Josh Brown has been receiving the issue, he gathered the following information from DanGold Enterprises' most recent order. Wait for direct materials to arrive Fabrication of parts Move order to assembly department Wait for machine time Assembly of parts 5.0 0.9 7.0 3.0 0.S Move order to finishing department Wait for machine time 4.0 Finishing of units Move to packing department Packing Move to shipping department Load delivery truck Drive to customer Unload delivery truck Return to plant 0.2 0.5 1.0 0.5 2.0 MacBook Air 989Explanation / Answer
1. Computation of delivery cycle time for DG’s order
Particulars
Days
Days
Days
Manufacturing time (or throughput time) (A)
Process time : (or value added time)
Fabrication of parts
5
Assembly of parts
3
Finishing of units
4
12
Move time :
Move order to assembly dept
0.9
Move order to shipping dept
0.2
Move order to packing dept
0.5
Move order to finishing dept
0.5
2.1
Process customer order
0.2
Total throughput time (A)
14.3
Wait time (B)
Wait for direct materials to arrive
3
Process customer order
0.2
Total wait time (B)
3.2
Delivery cycle time (A)+(B)
17.5
2. Computation of manufacturing cycle time for DG’s order
Manufacturing time (or throughput time) is 14.3 days (as calculated above)
3. Computation of value added time for DG’s order
Value added time or process time is 12 days (as calculated above)
Particulars
Days
Days
Days
Manufacturing time (or throughput time) (A)
Process time : (or value added time)
Fabrication of parts
5
Assembly of parts
3
Finishing of units
4
12
Move time :
Move order to assembly dept
0.9
Move order to shipping dept
0.2
Move order to packing dept
0.5
Move order to finishing dept
0.5
2.1
Process customer order
0.2
Total throughput time (A)
14.3
Wait time (B)
Wait for direct materials to arrive
3
Process customer order
0.2
Total wait time (B)
3.2
Delivery cycle time (A)+(B)
17.5
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