Oakwood company produces maple bookcases to customer order


Question - Oakwood Company produces maple bookcases to customer order. It received an order from a customer to produce 5,000 bookcases. The following information is available for the production of the bookcases.

Process time      13.0 days

Inspection time  0.9 days

Move time         5.5 days

Wait time          10.0 days

Required:

1. Compute the company's manufacturing cycle time.

2. Compute the company's manufacturing cycle efficiency.

3. Oakwood believes it can reduce move time by 1.1 days and wait time by 2.5 days by adopting lean manufacturing techniques. Compute the company's manufacturing cycle efficiency assuming the company's predictions are correct.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Oakwood company produces maple bookcases to customer order
Reference No:- TGS02399760

Now Priced at $25 (50% Discount)

Recommended (98%)

Rated (4.3/5)