LINK TO TEXT LaCrosse, Inc., sales manager Josh Brown has been receiving calls f
ID: 2522406 • Letter: L
Question
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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 Process customer order 0.2 Wait for direct materials to arrive 3.0 Fabrication of parts 4.0 Move order to assembly department 0.8 Wait for machine time 6.0 Assembly of parts 2.0 Move order to finishing department 0.4 Wait for machine time 3.0 Finishing of units 4.0 Move to packing department 0.6 Packing 1.5 Move to shipping department 0.3 Load delivery truck 0.6 Drive to customer 1.5 Unload delivery truck 0.9 Return to plant 2.0
Explanation / Answer
a) Delivery cycle time is the time span between the acceptance of an order from a customer to the ultimate delivery of the product to the customer
In above case we need to conisder all days except time taken to return to plant so delivery cycle time is 28.8 Days
b) Manufacturing cycle time refers to the time required or spent to convert raw materials into finished goods.
Manufacturing cycle time = Process + Move + Inspection + Queue
= 4+0.8+6+2+0.4+3+4 = 20.2 Days
c) Value added time - Value added time is the processes and activities in the production or manufacturing process that improve the product
Fabrication of Product + Assembly of Part + Finishing of Goods
4+2+4 =10 Days
d) Manufacturing Cycle efficiency - Value added time as a percentage of throughput time is called manufacturing cycle efficiency
10/20.2 = 49.5%
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