Cycle time is the time it takes to produce a unit of output from the time the materials are received till the finished goods are produces. The data of the production of the Company in the manufacturing plant in Des Moines is given in the question.
The move time, wait time, and the rework time is 10 minutes, 20 minutes, and 5 minutes respectively.
1.Calculate Theoretical velocity:
The actual velocity is calculated as:
Theoretical cycle time is calculated as
Actual cycle time is calculated as
2.Calculate Conversion cost:
Assignment per unit (theoretical):
Assignment per unit (actual):
3.Manufacturing cycle efficiency:
MCE (manufacturing cycle efficiency) is another time-based operational measure. The information of one of its products for each hour of production is given in the question.
The MCE is calculated as:
Increasing MCE will reduce the actual process time by reducing non-value-added time. This would in turn reduce conversion cost.
Balanced scorecard is a model of lead and lag indicator of performance that includes the financial and non-financial performance measures.
Balanced scorecard is a very effective tool in matching your mission and vision with the objectives. It tells you how you can reach your goals by effectively utilizing all your resources and manpower.
It shows how you can improve the customer satisfaction, if you do that your business can grow. Learning and innovation are major tools for increasing the efficiency in the organization. It helps in creating a product that delivers value to the customers which ultimately benefits the customers.
The four chief perspectives of a balanced scorecard are given below.
• The growth and learning perception.
• The internal business perspective.
• The customer perspective.
• The financial perspective.
These are readily quantified and verified.
These are less quantifiable and more judgmental. These are the factors that are useful in future performances.
These are expressed in monetary terms (cost per unit).
These use non-monetary units like number of dissatisfied customers.
These are related to customer versus shareholders.
These measures are related to processes and capabilities.
Classify each measure according to the following perspectives as shown below:
The long-wave of value creation:
The long-wave of value creation is defined as process of monitoring the emerging needs of customers and thereby producing new and technically upgraded products in order to meet the new and potential needs of customers.
In a real sense we can say that under the long wave of value creation the company considers the new and innovative products on priority basis. Therefore company is always busy in research and development in order to produce new and innovative product to customers. As to days customers are only looking for new and technologically updated products.
The short-wave of value creation:
U nder the short wave of value creation, companies do not think of innovation and emerging needs of customers. However they continue manufacturing and delivering of existing goods to market and customers.
They try to upgrade their existing product line but do not take in account the production of new and innovative products. Hence we can say under this practice the vision of organization is limited to existing products running in the market.
There is no answer for this question