Problem 11-16 (continued)
3. Students’ answers may differ in some details from this solution.
Average
+
+
Sales
Contribution
margin per ton
Financial
Number of new
Customer
+
+
+
Problem 11-19 (continued)
b. Areas of deterioration:
Material control.
Scrap as a percentage of total cost has tripled over
3. a. and b.
Month
5
6
Throughput time in days:
Process time ……………………………………
1.8
1.8
Inspection time ………………………………..
0.7
0.0
Move time ………………………………………
0.5
0.5
Queue time during production …………….
0.0
0.0
Total throughput time ………………………..
3.0
2.3
Manufacturing cycle efficiency (MCE):
Process time ÷ Throughput time ………….
60.0%
78.3%
As non-value-added activities are eliminated, the manufacturing cycle
efficiency improves. The goal, of course, is to have an efficiency of
100%. This is achieved when all non-value-added activities have been
eliminated and process time equals throughput time.
