Chocolate Delights Company produces baking chocolate for use by commercial organizations. The company is analyzing its operations in preparation for reconfiguring its factory setup.
Currently, each batch of chocolate requires the following processes:
|
Function
|
Time (Minutes)
|
|
Receiving ingredients from vendors
|
90
|
|
Transporting ingredients to stockroom
|
100
|
|
Ingredient storage
|
6,400
|
|
Transporting ingredients to production area
|
75
|
|
Mixing ingredients
|
400
|
|
Cooking ingredients
|
180
|
|
Cooling chocolate
|
90
|
|
Packaging chocolate
|
160
|
|
Moving finished goods to warehouse
|
105
|
|
Storing finished goods in warehouse
|
20,500
|
|
Moving finished goods to trucks
|
150
|
a) Calculate the total cycle time necessary to manufacture a batch of chocolate.
b) Identify the value-added functions
c) Calculate the manufacturing cycle efficiency (MCE) of this process.
d) Assume that a management consultant has established a goal that Chocolate Delights Company increase its MCE to 5 percent or greater. Identify three possible areas in which the company could reduce its cycle time.