Question

Cycle Time and Velocity, MCE Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce 243,000 laptops per quarter but currently produces 91,125 units. The conversion cost per quarter is $7,290,000. There are 60,750 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of the laptops uses 10 minutes of move time, 10 minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.) Note: Assume that the company identifies poor plant layout as the root cause of wait time. rework time wait time Required: wait time, move time and rework time a. If the plant layout is improved by reducing then MCE will increase/decrease Then conversion cost per unit will increase/decrease b. Assume that you set an MCE target of 75 percent, based on the improvement strategy described above. This implies an MCE ratio of: 15/25 15/20 15/30

Answer 1

Cycle time and velocity @ If the plant layout is improved by reduring wart time then MCE will increases Then conversion cost per unit will decrease It is much clear that very waste time will geduring produce more products and thes manu facturing cycle efficiany ine reases. This simply implies that conversion cost decreases. you set target of 75%, based on the improvement strategy described above, this implies an (62 an MCE Assume that MLE ratio of 115/20 Since n = 15% 3 4 ox 15/20.

Cycle time and velocity @ If the plant layout is improved by reduring wart time then MCE will increases Then conversion cost per unit will decrease It is much clear that very waste time will geduring produce more products and thes manu facturing cycle efficiany ine reases. This simply implies that conversion cost decreases. you set target of 75%, based on the improvement strategy described above, this implies an (62 an MCE Assume that MLE ratio of 115/20 Since n = 15% 3 4 ox 15/20.