Exercise 9-18 Manufacturing cycle time and efficiency LO A4 Oakwood Company prod

Question

Exercise 9-18 Manufacturing cycle time and efficiency LO A4

Oakwood Company produces maple bookcases to customer order. The following information is available for the production of the bookcases.

Required:
1. Compute the company’s manufacturing cycle time.
2. Compute the company’s manufacturing cycle efficiency.
3. Management believes it can reduce move time by 1.10 days and wait time by 2.50 days by adopting lean manufacturing techniques. Compute the company’s manufacturing cycle efficiency assuming the company’s predictions are correct.
  

Explanation / Answer

1. Manufacturing cycle time = Process time + Inspection time + Move time + Wait time = 9.0 + 1.2 + 3.4 + 4.0 = 17.6 days

2. Manufacturing cycle efficiency = Process time / Manufacturing cycle time = 9.0 / 17.6 = 0.51

3. Manufacturing cycle efficiency = Process time / Manufacturing cycle time = 9.0 / (17.6 - 1.10 - 2.50) = 0.64

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