FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
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Cycle Time and Velocity, Manufacturing Cycle
Efficiency
A company like Kicker performs warranty repair work on speakers in a manufacturing cell.
The typical warranty repair involves taking the defective speaker apart, testing the components,
and replacing the defective components. The maximum capacity of the cell is 1,000 repairs per
month. There are 500 production hours available per month.
Required:
1. Compute the theoretical velocity (per hour) and the theoretical cycle time (minutes per
unit repaired).
2. Speaker repair uses 4 minutes of move time, 10 minutes of wait time, and 6 minutes of
inspection time. Calculate the MCE.
3. Using the information from Requirement 2, calculate the actual cycle time and the actual
velocity for speaker repair.
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