Practice Exercise 04 LaCrosse, Inc., sales manager Josh Brown has been receiving

Question

Practice Exercise 04 LaCrosse, Inc., sales manager Josh Brown has been receiving calls from customers complaining about the length of time it takes to receive an order. To help him understand the issue, he gathered the following information from DanGold Enterprises' most recent order Days Required 0.1 3.0 Process customer order Wait for direct materials to arrive Fabrication of parts Move order to assembly department Wait for machine time Assembly of parts Move order to finishing department Wait for machine time Finishing of units Move to packing department Packing Move to shipping department Load delivery truck Drive to customer Unload delivery truck Return to plant 0.8 6.5 0.5 3.0 0.8 1.9 0.2 0.5 1.0 0.9 1.0

Explanation / Answer

(a)

Delivery cycle time = 29.3 days

(b)

Manufacturing cycle time = 26.2 days

(c)

Value added time = 12 days

(d)

Manufacturing cycle time efficiency = 12 / 26.2 = 46%

Process customer order 0.1 Wait for direct materials to arrive 3 Fabrication of parts 4 Move order to assembly department 0.8 Wait for machine time 6.5 Assembly of parts 4 Move order to finishing department 0.5 Wait for machine time 3 Finishing of units 4 Move to packing department 0.8 Packing 1.9 Move to shipping department 0.2 Load delivery truck 0.5 Delivery Cycle time 29.3

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