Slide 5 chapter 09 Performance Measurement and Responsibililty Accounting Comput

Question

Slide 5 chapter 09 Performance Measurement and Responsibililty Accounting Compute cycle time and cycle elficienoy, and explain their importance to production management points Knowledge Check 02 Select the best answer to the question Question 1ot1 The sailboat Company makes sailboats. To make one svat it takes 2 days to move all the wood into the production factory, 5 days to cut, assembie, and glue the wood togetner to make the boat. 2 days for the glue to dry and 1 day to take the boat to the lake to see whether it loats what is the cycle emciency of the Sailboat Company? 5 days 4 days 40% 50%

Explanation / Answer

1.

Move time = wood into factory = 2 days

Processing time = assemble work = 5 days

Queue time = dry work = 2 days

Inspection timing = Test to float = 1 days

Cycle time = Processing time + Inspection timing + Move time + Queue time

                  = 5 + 1 + 2 + 2

                  = 10 days

Cycle efficiency = (Processing time / Cycle time) × 100

                           = (5 / 10) × 100

                           = 50%

Answer: the last option

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