Consider the following process model. Each task is annotated with its average processing time. Make sure...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider the following process model. Each task is annotated with its average processing time. Make sure you show the calculation steps. 1. Calculate the Theoretical Cycle Time (TCT) of this process. (8 marks) 2. Let us assume that the cycle time of this process is 2 business days. (16 hours) What is the Cycle Time Efficiency (CTE) of this process? (2 marks) 3. Based on the Cycle Time Efficiency, is there a room for improving cycle time? Explain. (2 marks) MetalWorks Production Manager Sales Production Engineer new Request for Quote 2 hours Assess project profitability No (20%) Request declined Yes (80%) Prepare production plan JAccept quote? 3 hours Estimate material costs 4 hours 2 hour Sales Production Engineer Estimate labor costs 1 hour Prepare and submit quote Production Manager Quote submitted Consider the following process model. Each task is annotated with its average processing time. Make sure you show the calculation steps. 1. Calculate the Theoretical Cycle Time (TCT) of this process. (8 marks) 2. Let us assume that the cycle time of this process is 2 business days. (16 hours) What is the Cycle Time Efficiency (CTE) of this process? (2 marks) 3. Based on the Cycle Time Efficiency, is there a room for improving cycle time? Explain. (2 marks) MetalWorks Production Manager Sales Production Engineer new Request for Quote 2 hours Assess project profitability No (20%) Request declined Yes (80%) Prepare production plan JAccept quote? 3 hours Estimate material costs 4 hours 2 hour Sales Production Engineer Estimate labor costs 1 hour Prepare and submit quote Production Manager Quote submitted
Expert Answer:
Answer rating: 100% (QA)
The image describes a process model that includes a sequence of tasks with annotated processing times Lets go through the process step by step to calculate the Theoretical Cycle Time TCT and determine the Cycle Time Efficiency CTE based on the provided information 1 To calculate the Theoretical Cycle Time TCT we will add up the times for each task along the longest path through the process since not all tasks may necessarily be executed in each iteration of the process Starting from assess new Request for Quote and assuming the request is accepted which happens 80 of the time Assess project profitability 2 hours Prepare production plan 3 hours Estimate material costs 2 hours since it is in parallel with Estimate labor costs we only take the longest path which is via Estimate labor costs Estimate labor costs 4 hours longest path Prepare and submit quote 1 hour Adding these times gives us the total for the longest path 2 3 4 1 10 hours So the Theoretical Cycle Time TCT is 10 hours 2 To calculate the Cycle Time Efficiency CTE we use the formula CTE Valueadded Time Total Cycle Time x 100 In this case the valueadded time is the TCT we have calculated 10 hours and the total cycle time is given as 16 hours 2 business days Thus CTE 10 hours 16 hours x 100 625 3 Based on the Cycle Time Efficiency there indeed appears to be room for improving cycle time An efficiency of 625 indicates that there is 375 of the cycle time that is not directly adding value to the process Improvements could be sought by Reducing nonvalueadded activities or wait times between tasks Streamlining operations to minimize the time required for each task Rearranging tasks to occur in parallel where possible Automating certain parts of the process to reduce manual processing time ... View the full answer
Related Book For
Introduction to Operations and Supply Chain Management
ISBN: 978-0132747325
3rd edition
Authors: Cecil B. Bozarth, Robert B. Handfield
Posted Date:
Students also viewed these general management questions
-
Given the input-output matrix as: Water 100 Electric Power Water Electric Power Agriculture 240 Final demand 260 400 100 80 480 140 500 Agriculture where entries are the values of the product in...
-
Let us consider the following process performed by an IT helpdeskthat handles requests from clients. The clients are employees of a company. Thereare about 500 employees in total. A request may be an...
-
Prove this statement: Let f be extended real-valued measurable function on a measurable set D. If f is integrable on D, then the set {D: f 0} is a o-finite set.
-
Is there a distinction between thermal energy and internal energy? Which term do physicists prefer?
-
A division of your company purchased a large quantity of new desktop computers during the current fiscal year. An internal audit manager has asked you to audit the process used to acquire the...
-
A healthcare company decides to produce a medicated transdermal patch to relieve the pain caused by soft tissue injuries. This product with a brand name of nanoPatch is based on a traditional herbal...
-
The Severn Company plans to raise a net amount of $270 million to finance new equipment and working capital in early 2009. Two alternatives are being considered: Common stock may be sold to net $60...
-
Show all working. If f(x)=4x-20, then f(13) (Leave your answer in exact form.
-
The comparative balance sheet of Iglesias Inc. for December 31, 20Y3 and 20Y2, is as follows: Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a....
-
Calculate the power exchanged by radiation by a radiator with a surface temperature of 6 0 C and an area of 1 m 2 for each face. Assume that one face exchanges heat with the room ( ( mean radiant...
-
A friend of yours is a vegan, and she receives an offer for what appears to be an ideal job at the headquarters of a group of restaurants that includes steak houses. She is worried about having a...
-
Ellie is a server in a restaurant. She earns most of her pay through tips from customers. Some tips are paid in cash and some are paid via credit card. What will Ellie's employer do? Group of answer...
-
An evaluation of your Background of the Problem (Why countless start-up businesses fail in the US) that demonstrates a comprehensive problem to be studied. The Background of the Problem should be or...
-
Watch the video explaining the four characteristics of services posted in this module 1. As you move into your future careers, how can a supervisor/manager overcome the challenges associated with:...
-
Igloo Inc. acquires Jagged Enterprises for $15 million in an acquisition reported as a merger. Jagged's recorded identifiable assets have a book value of $10 million and a fair value of $2 million....
-
If you were thinking about being an investor for an IPO, what sort of things would raise "red flags" or "concerns" when you reading the prospectus? When answering this question, refer when...
-
Determine by direct integration the values of x for the two volumes obtained by passing a vertical cutting plane through the given shape of Fig. 5.21. The cutting plane is parallel to the base of the...
-
What are the advantages to a firm of coordinating its S&OP process with key supply chain partners? What are the potential drawbacks?
-
Now suppose the lead time for item A2, shown in problem 6, is three weeks rather than two weeks. Based on this information, can the company support the current gross requirements for the A2? Why?...
-
What is the difference between an information flow and an information system? Do information systems always have to be computerized? Why?
-
As part of a study of the relationship between brain size and IQ, a random sample of 250 adult males is obtained and their brain volumes are measured and found to be normally distributed. Decide...
-
A sample of 2,000 women is randomly selected, and it is found that the heights of the women are normally distributed with a mean of 63.6 in. Decide whether the statement makes sense (or is clearly...
-
The waiting times at a bus stop if the bus comes once every 10 minutes and you arrive at random times. State whether you would expect it to be normally distributed. Explain your reasoning.
Study smarter with the SolutionInn App