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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 37
BOTTLENECK OPERATION, IMPROVING PRODUCTION FLOW
Vitacom, 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 it could produce 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 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?
Vitacom, 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 it could produce 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 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 continuous...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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