Nanner Corporation is trying to determine how long it takes for one product to p

Question

Nanner Corporation is trying to determine how long it takes for one product to pass through the production process. The following information was gathered regarding how many days the product spent in various production activities: Activity Number of Days Inspection 5 Storage 6 Assembly 4 Handling 2 Painting 1 Packaging 1 a. Which of the above activities are value-added? Inspection and storage Handling and packaging Assembly and painting b. What is Nanner's total cycle time? Total cycle days c. Determine Nanner's manufacturing efficiency ratio. (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Manufacturing efficiency ratio % d. If Nanner implements a total quality management program and a just-in-time inventory system. What would be the change in Nanner's manufacturing efficiency ratio? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Manufacturing efficiency ratio %

Explanation / Answer

Inspection and storage total days = 19 efficiency ratio = 6/19 If Nanner implements a total quality management program and a just-in-time inventory system its manufacturing efficiency ratio increases

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