Shields Manufacturing produces containers for nurseries and landscaping businesses. The company competes based on its low-cost, high-quality

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Shields Manufacturing produces containers for nurseries and landscaping businesses. The company competes based on its low-cost, high-quality products. As the company's expenses have risen, management has become concerned with the need to streamline various processes in order to reduce costs without reducing quality. The following table shows the time needed to produce a batch of 1-inch plant flats:

Activity Time to Complete

Materials moved to production floor...... 25 minutes

Production in station 1............. 35 minutes

Materials moved to station 2......... 5 minutes

Wait to begin at station 2 ..........8 minutes

Production in station 2 ...........45 minutes

Inspection ................3 minutes

Materials moved to finished goods inventory ..6 minutes


Required

a. What is the manufacturing cycle time (throughput time) to produce a batch of 1-inch plant flats and prepare it for sale?

b. How much of the process time is value-added?

c. Calculate the manufacturing cycle efficiency.

d. What suggestions do you have for eliminating non-value-added time?


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Managerial Accounting

ISBN: 978-1118338445

2nd edition

Authors: Charles E. Davis, Elizabeth Davis

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