Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Chapter 20, Problem 5CE
See Cornerstone Exercise 20.4. Fisher Company has three sequential processes: cutting, welding, and assembly. Assume that the optimal mix is Component A = 0 units per week; and Component B = 30 units per week. Demand is uniformly spread out over the five-day work week. Fisher requires a 2.5-day buffer.
Required:
- 1. Identify the drummer, the rate of production, the time buffer, and the rope.
- 2. Illustrate the DBR structure of Fisher Company.
- 3. What if the Welding Department was allowed or encouraged to produce at capacity? What effect will this have on work-in-process inventories?
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Calculate Lead Time
Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 64 units. The process time for each step is as follows:
Process Step 1
Process Step 2
Process Step 3
Process Step 4
7 minutes
5 minutes
4 minutes
9 minutes.
The time required to move each batch between steps is 12 minutes. In addition, the time to move raw materials to Process Step 1 is also 12 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 12
minutes.
The new lean layout will allow the company to reduce the batch sizes from 64 units to 4 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay
the same.
Value-added time
Non-value-added time
Total lead time
Value-added ratio (as a percent)
Determine the value-added, non-value-added, and total lead…
Mabbut Company has the following departmental manufacturing layout for one of its plants:
Required:1. Calculate the total time it takes to produce a batch of 10 units using the traditionaldepartmental manufacturing layout.2. Using cellular manufacturing, how much time is saved producing the same batch of10 units? Assuming the cell operates continuously, what is the production rate? Whichprocess controls this production rate?3. Assume the processing time of Welding is reduced to 6 minutes, while the times ofthe other processes stay the same. What is the production rate now, and how longwill it take to produce a batch of 10 units if the cell is in a continuous productionmode?
Chapter 20 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 20 - What are ordering costs? What are setup costs?...Ch. 20 - Explain why, in the traditional view of inventory,...Ch. 20 - Discuss the traditional reasons for carrying...Ch. 20 - Prob. 4DQCh. 20 - Explain how safety stock is used to deal with...Ch. 20 - Prob. 6DQCh. 20 - What approach does JIT take to minimize total...Ch. 20 - One reason for inventory is to prevent shutdowns....Ch. 20 - Prob. 9DQCh. 20 - Explain how long-term contractual relationships...
Ch. 20 - What is a constraint? An internal constraint? An...Ch. 20 - Prob. 12DQCh. 20 - Prob. 13DQCh. 20 - Explain how lowering inventory produces better...Ch. 20 - Prob. 15DQCh. 20 - Thomas Corporation produces heating units. The...Ch. 20 - Sterling Corporation has an EOQ of 5,000 units....Ch. 20 - Patz Company produces two types of machine parts:...Ch. 20 - Prob. 4CECh. 20 - See Cornerstone Exercise 20.4. Fisher Company has...Ch. 20 - Ottis, Inc., uses 640,000 plastic housing units...Ch. 20 - Ottis, Inc., uses 640,000 plastic housing units...Ch. 20 - Melchar Company uses 78,125 pounds of oats each...Ch. 20 - Prob. 9ECh. 20 - Morrison Manufacturing produces casings for sewing...Ch. 20 - Morrison Manufacturing produces casings for sewing...Ch. 20 - Refer to Exercise 20.10. Assume the economic lot...Ch. 20 - Eyring Manufacturing produces a component used in...Ch. 20 - Hales Company produces a product that requires two...Ch. 20 - Many companies have viewed JIT as a panaceaa...Ch. 20 - Prob. 16ECh. 20 - Prob. 17ECh. 20 - Which of the following describes the economic...Ch. 20 - The economic order quantity (EOQ) for Part X15 is...Ch. 20 - A JIT inventory management system maintains which...Ch. 20 - For the theory of constraints, which of the...Ch. 20 - A dedicated pharmaceutical plant uses the theory...Ch. 20 - Prob. 23PCh. 20 - Burnett Company produces two types of gears: Model...Ch. 20 - Taylor Company produces two industrial cleansers...Ch. 20 - Prob. 26PCh. 20 - Calen Company manufactures and sells three...Ch. 20 - Confer Company produces two different metal...Ch. 20 - Pratt Company produces two replacement parts for a...Ch. 20 - Bountiful Manufacturing produces two types of bike...
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