Wolk Corp. is a highly automated manufacturing company. The vice president of fi
ID: 2534372 • Letter: W
Question
Wolk Corp. is a highly automated manufacturing company. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor is insignificant in terms of the total cost of production and tends to be fixed. Material quality is considered more important than minimizing material cost. And customer satisfaction is the number one priority. As a result, delivery performance measures have been chosen to evaluate manufacturing performance. The following data are considered to be typical of the time to complete orders.
Wait time to the start of production 10.0 days
Inspection time 1.5 days
Process time 3.0 days
Queue time during production process 5.0 days
Move time 2.5 days
What is the delivery cycle time?
What is the throughput (manufacturing cycle) time?
What is the manufacturing cycle efficiency (MCE)?
Explanation / Answer
What is the throughput (manufacturing cycle) time?
Throughput time = Process time + Inspection time + Move time + Queue time
= 3 days + 1.5 days + 2.5 days + 5 days
= 12 Days
What is the manufacturing cycle efficiency (MCE)?
MCE = Process time ÷ Throughput time
= 3 days ÷ 12 days
= 0.25
What is the delivery cycle time?
Delivery cycle time = Wait time + Throughput time
= 10 days + 12 days
= 22 Days
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