Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Exercise 51

( Appendix 12A ) Cycle Time and Velocity, Manufacturing Cycle Efficiency
A company like Kicker performs warranty repair work on speakers in a manufacturing cell. The typical warranty repair involves taking the defective speaker apart, testing the components, and replacing the defective components. The maximum capacity of the cell is 1,000 repairs per month. There are 500 production hours available per month.
Required:
1. Compute the theoretical velocity (per hour) and the theoretical cycle time (minutes per unit repaired).
2. Speaker repair uses 4 minutes of move time, 10 minutes of wait time, and 6 minutes of inspection time. Calculate the MCE.
3. Using the information from Requirement 2, calculate the actual cycle time and the actual velocity for speaker repair.