LO.4 (Throughput) Just Nuts, a macadamia nut cannery, is analyzing its throughpu

Question

LO.4 (Throughput) Just Nuts, a macadamia nut cannery, is analyzing its throughput for September. The fol- lowing statistics are obtained for the month:

Cans packed and sold                350,000

Total cans packed                       371,020

Value-added processing time      650 Hours

Total processing time               2,450 hours

a. Calculate the manufacturing cycle efficiency.

b. Calculate the process productivity.

c. Calculate the process quality yield.

d. Calculate the throughput using only good units and total time.

e. Verify your answer to part (d) by using your answers to parts (a), (b), and (c

Explanation / Answer

a. Manufacturing cycle efficiency = Value added time / throughput time.

= 650 / 2450 = .26

b. Process Productivity = Output / Time consumed = 371,020 / 2450 = 151.4

c. Yield = 350,000 / 371,020 = 94%

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