This textbook is available at## Cornerstones of Cost Management (4th Edition)

Book Edition | 4th Edition |

Author(s) | Hansen, Mowen |

ISBN | 9781305970663 |

Publisher | Cengage |

Subject | Management |

DISCUSSION QUESTIONS

Exercises

Chapter 15, End Of Chapter, REVIEW PROBLEMS, Exercise I

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**MCE, Lean Measures, and the Balanced Scorecard**

Numark, Inc., manufactures a product that experiences the following activities and times (the production processes are listed in sequential order):

Minutes | |
---|---|

Cutting | 20 |

Welding | 15 |

Assembly | 7 |

Polishing | 3 |

Moving (three moves) | 12 |

Waiting | 18 |

**Required:**

Compute the time required to produce one unit of product under the current production layout.

**MCE, Lean Measures, and the Balanced Scorecard**

Numark, Inc., manufactures a product that experiences the following activities and times (the production processes are listed in sequential order):

Minutes | |
---|---|

Cutting | 20 |

Welding | 15 |

Assembly | 7 |

Polishing | 3 |

Moving (three moves) | 12 |

Waiting | 18 |

**Required:**

Assume that Numark creates a manufacturing cell that eliminates move and wait times. What is the production rate assuming continuous production?

**MCE, Lean Measures, and the Balanced Scorecard**

Numark, Inc., manufactures a product that experiences the following activities and times (the production processes are listed in sequential order):

Minutes | |
---|---|

Cutting | 20 |

Welding | 15 |

Assembly | 7 |

Polishing | 3 |

Moving (three moves) | 12 |

Waiting | 18 |

**Required:**

If the time for the cutting operation is cut in half, what effect will this have on the production rate?

Time(in minutes) | |

Cutting | 20 |

Welding | 15 |

Assembly | 7 |

Polishing | 3 |

Moving(3moves x 12min/move) | 36 |

Waiting | 18 |

TOTAL PRODUCTION TIME | 99 |

Just add all. Note also that I assume that moving is 12 minutes per move.

99 minutes or 1 hour and 39minutes

To get the production rate we divide the number of products produced by the time taken to produce the products. The amount spent on the creation of a single product above is gotten by adding the time taken on all the processes. Since the company opted to eliminate 2 processes, the time spent on those processes is eliminated hence the production rate the was initially 1 product per 75 minutes is reduced to 1 product per 45 minutes.

1 product per 45 minutes

Cutting the cut operation by half, we will have the welding as the slowest operation;

Production rate=60/15=4 units per hour.

**Solution**

The new production rate will increase to 4 units per hour.

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