Zodiac Sound Co. manufactures audio systems, both made-to-order and mass-produced systems, that are typically sold to large-scale
Question:
Required
1. Define the terms value-added time, non-value-added time, and manufacturing cycle efficiency (MCE). Conceptually, how are activities included in the first two categories determined? (That is, how does one know what activities are considered value-added?)
2. Define the terms manufacturing cycle time and processing (manufacturing) time. How can processing time be broken down further?
3. Given the estimated data below, calculate and interpret the MCE (to 2 decimal places, e.g., 0.38456 = 38.46%) for both the current manufacturing process and the proposed process after implementing JIT:
4. What is the percentage change (to 2 decimal places) in average MCE anticipated under JIT?
5. What additional nonfinancial performance indicators might management monitor in conjunction with the move to JIT?
Step by Step Answer:
Cost Management A Strategic Emphasis
ISBN: 9781259917028
8th Edition
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith