Manufacturing Cycle Time Is a Popular Nonfinancial Measure Used to Evaluate

Essay

Manufacturing cycle time is a popular nonfinancial measure used to evaluate performance.
Required:
A.Cycle time is defined as processing time divided by the sum of processing,moving,waiting,and inspection time.The optimal value for this measure is one,that is,a situation where there is no waiting,moving,or inspection time.
A.Define manufacturing cycle time and indicate the optimal value (i.e. ,number)for this measure.
B.Provide examples of two changes in a manufacturing process that would help improve a company's cycle time.
B.There are many such examples:
· Inspection time can be reduced by eliminating the need to inspect materials from suppliers.This could occur by dealing with better suppliers and placing a greater reliance on the suppliers' control process.
· Waiting time can be reduced through better scheduling of bottlenecked machinery.
· Moving time can be reduced through improvements in plant layout.