
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 10
Continuous Flow vs. Departmental Flow Manufacturing
Anderson Company has the following departmental manufacturing structure for one of its products:
After some study, the production manager of Anderson recommended the following revised cellular manufacturing approach:
Required:
1. Calculate the total time it takes to produce a batch of 20 units using Anderson's traditional departmental structure.
2. Using cellular manufacturing, how much time is saved producing the same batch of 20 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate?
3. What if the processing times of molding, welding, and assembly are all reduced to six minutes each? What is the production rate now, and how long will it take to produce a batch of 20 units?
Anderson Company has the following departmental manufacturing structure for one of its products:

After some study, the production manager of Anderson recommended the following revised cellular manufacturing approach:

Required:
1. Calculate the total time it takes to produce a batch of 20 units using Anderson's traditional departmental structure.
2. Using cellular manufacturing, how much time is saved producing the same batch of 20 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate?
3. What if the processing times of molding, welding, and assembly are all reduced to six minutes each? What is the production rate now, and how long will it take to produce a batch of 20 units?
Explanation
1.Calculation of total time to produce b...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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