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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 1
Bottleneck Operation: Improving Production Flow
Bienestar, Inc., implemented cellular manufacturing as recommended by a consultant. The production flow improved dramatically. However, the company was still faced with the competitive need to improve its cycle time so that the production rate is one bottle every four minutes (15 bottles per hour). The cell structure is shown below; the times above the process represent the time required to process one unit.
Required:
1. How many units can the cell produce per hour (on a continuous running basis)?
2. How long does it take the cell to produce one unit, assuming the cell is producing on a continuous basis?
3. What must happen so that the cell can produce one bottle every four minutes or 15 per hour, assuming the cell produces on a continuous basis?
Bienestar, Inc., implemented cellular manufacturing as recommended by a consultant. The production flow improved dramatically. However, the company was still faced with the competitive need to improve its cycle time so that the production rate is one bottle every four minutes (15 bottles per hour). The cell structure is shown below; the times above the process represent the time required to process one unit.
Required:
1. How many units can the cell produce per hour (on a continuous running basis)?
2. How long does it take the cell to produce one unit, assuming the cell is producing on a continuous basis?
3. What must happen so that the cell can produce one bottle every four minutes or 15 per hour, assuming the cell produces on a continuous basis?
Explanation
Verified
Verified
1.If the cell is processing continuously...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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