Fontane, Inc., has provided the following information for one of its products for each hour of production:

Question:

Fontane, Inc., has provided the following information for one of its products for each hour of production:
Actual velocity: 400 units (per hour)
Move time: 25 minutes
Inspection time: 5 minutes
Rework time: 10 minutes


Required:
1. Calculate MCE. Comment on its significance. Round answers to two decimal points.
2. What is the theoretical cycle time? Calculate MCE using actual and theoretical cycle times. Round answers to two decimal points.
3. What if waste is reduced by 20 percent? What is the new MCE? New cycle time? Round answers to two decimal points.

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Related Book For  book-img-for-question

Cost Management

ISBN: 978-0357141090

5th Edition

Authors: Don R Hansen, Maryanne M Mowen, Dan L Heitger

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