Question: Refer to Exhibit 7.7, the restaurant value stream map, and recompute the total value-added and non-value-added time and cost given the following new information. The

Refer to Exhibit 7.7, the restaurant value stream map, and recompute the total value-added and non-value-added time and cost given the following new information. The chef's time is valued at $30 per hour, oven operation at $10 per hour, precooking order waiting time at $5 per hour, and post-cooking order waiting time at $60 per hour. The $60 estimate reflects the cost of poor quality for a dinner waiting too long that might be delivered to the customer late (and cold). If a restaurant uses iPads to place orders and notify waiters when the customer's order is ready, the time on the order board (now an electronic order board) decreases from five to two minutes, and the prepared order wait time decreases from five to four minutes. Round your answer for the total revised time to the nearest whole number and round your answer for the total revised cost to three decimal places.
Total Revised Time: minutes
Total Revised Cost: $
EXHIBIT 7.7 Value Stream Map for Restaurant Order Posting and Fulfillment Process Value Added Activities (VA) Non-Value Added Activities (NVA) Order waits on order board @ (5 minutes per order] X(1 hr/60 min) (95 per hour] =$0.417 Chef picks up order and checks "Is it accurate?" @ (1 minute per order) (1 hr/60 min) ($30 per hour) = $0.50 If order is accurate, chef stages raw materials @ (4 minutes per order] X (1 hr/60 min) X(30 per hour) = $2.00 Chef cooks meal using ovens @ (12 minutes per order) (1 hr/60min) X ($30 per hour) = $6.00 labor cost (10 minutes per order) (1 hr/60 min) x ($10/hour oven cost) $1.67 equipment cost Total labor+ Oven cost $7.67 Chef assembles order (3 minutes per order) (1 ht/60 minutes) X($30 per hour) = $1.50 Prepared order waits for walter to pick up customer's order (5 minutes per order) (1 ht/60 min) X(560 per hour) - $5.00 Total Time = 20 minutes (VA time) + 10 minutes (NVA time) = 30 minutes Total Cost = $11.67 (VA cost) + $5.417 (NVA cost) = $17.087Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
