Ex 13-9 Name:
Enter the appropriate numbers in the shaded cells in columns G and I.
1) Velocity = Capacity
Production hours
Velocity (theoretical) = =
Velocity (actual) = =
Cycle time = Minutes per hour
laptops per hour
Cycle time (theoretical) = =
Cycle time (actual) = =
2) Conversion cost rate = Conversion cost
# minutes available
Conversion cost rate = =
minutes
cost per minute per laptop
Assignment per unit (theoretical) = x minutes
=
minutes
cost per minute per laptop
Assignment per unit (actual) = x minutes
=
3) MCE = Processing time / (Processing time + Wait time + Inspection time + Rework time)
= /
=
Ex 13-9 Name:
Enter the appropriate numbers in the shaded cells in columns G and I.
1) Velocity = Capacity
Production hours
Velocity (theoretical) = 243,000 = 4 laptops per hour
60,750
Cycle time (theoretical) = 60 =15 minutes per laptop
4
2) Conversion cost rate = Conversion cost
# minutes available
Conversion cost rate = $7,290,000 =2.00$ per minute
3,645,000
minutes
3) MCE = Processing time / (Processing time + Wait time + Inspection time + Rework time)
SOLUTION
Prob 13-21 Name:
Enter the appropriate amount in the shaded cells in columns C and G. An asterisk (*)
will appear in the column to the right of any incorrect amount.
Data 2012 2014
Theoretical annual capacity
Actual production
Market size
Production hours available
Very satisified customers
Actual cost per unit
Days of inventory
Number of defective units
Total worker suggestions
Hours of training
Selling price per unit
Number of new customers
a. Actual velocity
Cycle time
b. % of revenue from new customers
c. % of very satisfied customers
d. Market share
e. % change in actual product cost n/a
f. % change in days of inventory n/a
g. % defective units
h. Total hours of training
I. Suggestions per production worker
j. Total revenue
k. Number of new customers
2012
2014
Prob 13-21 Name:
Enter the appropriate amount in the shaded cells in columns C and G. An asterisk (*)
will appear in the column to the right of any incorrect amount.
Data 2012 2014
Theoretical annual capacity 249,600 249,600
Actual production 208,000 234,000
Market size 1,300,000 1,300,000
Production hours available 208,000 208,000
a. Actual velocity 208,000 2234,000 2.25
104,000 per hour 104,000 per hour
Cycle time 60 30 60 26.67
2.00 minutes 2.25 minutes
e. % change in actual product cost n/a 65 20%
325
f. % change in days of inventory n/a (7.8) -50%
15.6
g. % defective units 13,000 6.25% 5,200 2.22%
208,000 234,000
2012
2014
SOLUTION
Prob 13-24 Name:
Enter the appropriate numbers in the shaded cells in columns G and I.
1) Velocity (theoretical) = Capacity
Production hours
Velocity (theoretical) = =
Cycle time (theoretical) = Minutes per hour
Carburetors per hour
Cycle time (theoretical) = =
2) Conversion cost rate = Conversion cost
# minutes available
Conversion cost rate = =
minutes
cost per minute per carburetor
Assignment per unit (theoretical) = x minutes
=
3) minutes
cost per minute per carburetor
Applied conversion cost = x minutes
=
4) MCE = Processing time / (Processing time + Wait time + Inspection time + Rework time)
= /
=
Wasted time = Actual time – Theoretical time
= –
= minutes
Cost = Conversion cost rate x Wasted time
= x
=
Prob 13-24 Name:
20
20
Enter the appropriate numbers in the shaded cells in columns G and I.
1) Velocity (theoretical) = Capacity
Production hours
Velocity (theoretical) = 450,000 = 3 carburetors per hour
2) Conversion cost rate = Conversion cost
# minutes available
Conversion cost rate = 9,000,000$ = 1.00$ per minute
=$20.00
3) minutes
cost per minute per carburetor
Applied conversion cost = $1.00 x40 minutes
4) MCE = Processing time / (Processing time + Wait time + Inspection time + Rework time)
=20 /
=0.50
Wasted time = Actual time – Theoretical time
40