Problem 14-45

Insert your answers into the gray-shaded cells. If an answer is incorrect, the

word “wrong” will appear.

a.

Value-added time

÷

Total time

=

MCE

15,680

56,000

b.

Process

Total units

÷   Value-added time   =

productivity

8,46,720

15,680

c.

Process

Good units

÷      Total units     =

quality yield

7,19,712

8,46,720

d.

Good units

÷

Total time

=

Throughput

7,19,712

56,000

e.

If only 280,000 of the units produced in April had been sold, would your answers to any of the preceding questions differ? If so, how? If not, why not?

f.

Total time

–   Value-added time   =

Non-value-added time

56,000

15,680

Non-value-added time x

Percentage

=

New NVA time

40,320

80%

New NVA time

+   Value-added time   =

Total time

32,256

15,680

Good units

÷

Total time

=

Throughput

7,19,712

47,936

g.

Total units     x

Percentage

=

Good units

8,46,720

90%

Good units

÷

Total time

=

Throughput

7,62,048

47,936

Wrong

h.

How would Haas determine how the non-value-added time was being spent in the division? What suggestions do you have to decrease non-value-added time and increase yield?

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