Tellus Co. manufactures battery operated vehicles that children ride around on.
ID: 2708369 • Letter: T
Question
Tellus Co. manufactures battery operated vehicles that children ride around on. (Similar to Power Wheels) As a production manager you develop the below value chart:
Operation
Average Number of Days
Receiving materials
3
Storing materials
2
Handling materials
3
Creating the plastic pieces for the body
6
Assembling the vehicle
2
Electrical work
4
Inspection/Quality control testing
2
Packaging for distribution
0.5
Storing product before distribution
10
a. What activities listed above are the value-added activities?
b. How much time is spent in total on value-added activities?
c. What activities listed above are the non-value-added activities?
d. How much time is spent in total on non-value-added activities?
Operation
Average Number of Days
Receiving materials
3
Storing materials
2
Handling materials
3
Creating the plastic pieces for the body
6
Assembling the vehicle
2
Electrical work
4
Inspection/Quality control testing
2
Packaging for distribution
0.5
Storing product before distribution
10
Tellus Co. manufactures battery operated vehicles that children ride around on. (Similar to Power Wheels) As a production manager you develop the below value chart: What activities listed above are the value-added activities? How much time is spent in total on value-added activities? What activities listed above are the non-value-added activities? How much time is spent in total on non-value-added activities?Explanation / Answer
value added activities are
Creating the plastic pieces for the body + Assembling the vehicle + Electrical work + Inspection/Quality control testing + Packaging for distribution
time spent = 6+2+4+2+0.5 = 14.5 days
rest activities are non value added.
and time spent on them are sum of their individual times
= 3+2+3+10 = 18
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