Zodiac Sound Company manufactures audio systems, both made-to-order and mass-produced systems that are typically sold to large-scale manufacturers of electronics equipment. For competitive reasons, the company is trying to increase its manufacturing cycle efficiency (MCE) measure. As a strategy for improving its MCE performance, the company is considering a switch to JIT manufacturing. While the company managers have a fairly good feel for the costs of implementing JIT, they are unsure about the benefits of such a move, both in financial and nonfinancial terms. To help inform the ultimate decision regarding a move to a JIT system, you've been asked to provide some input. Fortunately, you've recently attended a continuing professional education (CPE) workshop on the costs and benefits of moving to JIT and therefore feel comfortable responding to management's request. Required: 3. Given the estimated data below, calculate the MCE for both the current manufacturing process and the proposed process after implementing JIT: Storage Inspection Moving Processing Activity 3. 4. Current System 77 minutes 47 minutes 62 minutes 77 minutes 4. What is the percentage change in average MCE anticipated under JIT? (For all requirements, do not round intermediate calculations and round your final answers to 2 decimal places (i.e., .1234 = 12.34%).) After JIT Implementation 37 minutes 32 minutes 32 minutes 47 minutes Current manufacturing process Proposed process after implementing JIT Percentage change in average MCE MCE % % %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Zodiac Sound Company manufactures audio systems, both made-to-order and mass-produced
systems that are typically sold to large-scale manufacturers of electronics equipment. For
competitive reasons, the company is trying to increase its manufacturing cycle efficiency (MCE)
measure. As a strategy for improving its MCE performance, the company is considering a switch
to JIT manufacturing. While the company managers have a fairly good feel for the costs of
implementing JIT, they are unsure about the benefits of such a move, both in financial and
nonfinancial terms. To help inform the ultimate decision regarding a move to a JIT system, you've
been asked to provide some input. Fortunately, you've recently attended a continuing
professional education (CPE) workshop on the costs and benefits of moving to JIT and therefore
feel comfortable responding to management's request.
Required:
3. Given the estimated data below, calculate the MCE for both the current manufacturing process
and the proposed process after implementing JIT:
Activity
Storage
Inspection
Moving
Processing
Current System
77 minutes
47 minutes
62 minutes
77 minutes
4. What is the percentage change in average MCE anticipated under JIT?
(For all requirements, do not round intermediate calculations and round your final answers to
2 decimal places (i.e., .1234 = 12.34%).)
3. Current manufacturing process
4.
After JIT
Implementation
37 minutes
32 minutes
32 minutes
47 minutes
Proposed process after implementing JIT
Percentage change in average MCE
MCE
%
%
%
Transcribed Image Text:Zodiac Sound Company manufactures audio systems, both made-to-order and mass-produced systems that are typically sold to large-scale manufacturers of electronics equipment. For competitive reasons, the company is trying to increase its manufacturing cycle efficiency (MCE) measure. As a strategy for improving its MCE performance, the company is considering a switch to JIT manufacturing. While the company managers have a fairly good feel for the costs of implementing JIT, they are unsure about the benefits of such a move, both in financial and nonfinancial terms. To help inform the ultimate decision regarding a move to a JIT system, you've been asked to provide some input. Fortunately, you've recently attended a continuing professional education (CPE) workshop on the costs and benefits of moving to JIT and therefore feel comfortable responding to management's request. Required: 3. Given the estimated data below, calculate the MCE for both the current manufacturing process and the proposed process after implementing JIT: Activity Storage Inspection Moving Processing Current System 77 minutes 47 minutes 62 minutes 77 minutes 4. What is the percentage change in average MCE anticipated under JIT? (For all requirements, do not round intermediate calculations and round your final answers to 2 decimal places (i.e., .1234 = 12.34%).) 3. Current manufacturing process 4. After JIT Implementation 37 minutes 32 minutes 32 minutes 47 minutes Proposed process after implementing JIT Percentage change in average MCE MCE % % %
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