Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Question
Chapter 12, Problem 3E
1.
To determine
Throughput time is the total time required for the completion of a process. For instance, the time required to manufacture machinery from the beginning till its end is the throughput time. The throughput time comprises process time, inspection time, move time, and queue time. Wait time is not a part of throughput time.
:
The throughput time.
2.
To determine
The manufacturing cycle refers to the amount of time in the manufacturing process that is spent on enriching or improving the product. Basically, it is the time taken by an organization in order to convert raw material into finished goods. Manufacturing cycle time includes material movement time, loading time, idle waiting time, machining and assembly time, inspection time, and so on.
:
The manufacturing cycle efficiency for the quarter.
3.
To determine
Throughput time is the elapsed time from the time of inception of the production process till the goods are dispatched to the customer. The throughput time is made up of four elements. It is the total of process time, inspection time, move time, and queue time.
:
The percentage of throughput time spent in non-value-added activities.
4.
To determine
Delivery cycle time is the total time required to produce as well as deliver the product to the customers. Basically, the elapsed time from the procurement of a client order until the final product is dispatched is the delivery cycle time.
:
The delivery cycle time.
5.
To determine
The manufacturing cycle refers to the amount of time in the manufacturing process that is spent on enriching or improving the product. Basically, it is the time taken by an organization in order to convert raw material into finished goods. Manufacturing cycle time includes material movement time, loading time, idle waiting time, machining and assembly time, inspection time, and so on.
:
The new MCE if by using Lean Production all queue time during production is eliminated.
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Exercise 12-3 (Static) Measures of Internal Business Process Performance [LO12-3]
Management of Mittel Company wants to reduce the elapsed time from when a customer places an order to when it is shipped. It
provided the following data for a recent quarter:
Inspection time
Wait time (from order to start of production)
Process time
Move time
Queue time
Required:
1. Compute the throughput time.
2. Compute the manufacturing cycle efficiency (MCE) for the quarter.
Note: Round your percentage answer to nearest whole percent.
3. What percentage of the throughput time was spent in non-value-added activities?
Note: Round your percentage answers to the nearest whole percent.
4. Compute the delivery cycle time.
5. If using Lean Production eliminates all queue time, what will be the new MCE?
Note: Round your percentage answer to 1 decimal place.
1. Throughput time
2. Manufacturing cycle efficiency
3. Non-value-added throughput time
4. Delivery cycle time
5. New manufacturing cycle efficiency
0.3…
Saved
Management of Mittel Company would like to reduce the amount of time between when a customer places an order and when the
order is shipped. For the first quarter of operations during the current year the following data were reported:
Inspection time
Wait time (from order to start of production)
0.3 days
15.1 days
3.2 days
0.7 days
4.0 days
Process time
Move time
Queue time
Required:
1. Compute the throughput time. (Round your answer to 1 decimal place.)
2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.)
3. What percentage of the throughput time was spent in non-value-added activities? (Round your percentage answer to nearest
whole percent.)
4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.)
5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediate
calculations. Round your…
Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported:
(picture)
Required:1. Compute the throughput time.2. Compute the manufacturing cycle efficiency (MCE) for the quarter.3. What percentage of the throughput time was spent in non–value-added activities?4. Compute the delivery cycle time.5. If by using Lean Production all queue time during production is eliminated, what will be thenew MCE?
Chapter 12 Solutions
Managerial Accounting
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 1AECh. 12 - Prob. 2AECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21C
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