Question

Wolk Corporation is a highly automated manufacturing firm. The vice president of finance has decided that...

Wolk Corporation is a highly automated manufacturing firm. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor for this company is insignificant in terms of the total cost of production and tends to be fixed, material quality is considered more important than minimizing material cost, and customer satisfaction is the number one priority. As a result, delivery performance measures have been chosen to evaluate performance. The following information is considered typical of the time involved to complete customer orders.

From time order is placed to time order received by manufacturing 10.0 days
From time order is received by manufacturing to time production begins 5.0 days
Inspection time 1.5 days
Process (manufacturing) time 3.0 days

Delivery time 4 days
Move time 2.5 days

A. What is the Customer Response Time (CRT)?

B. What is the Manufacturing Cycle Efficiency?

C. What is the order receipt time?

D. What is the Manufacturing wait time?

E. What is the Manufacturing lead time?

Homework Answers

Answer #1
ans 1 Customer response time=Receipt time+manufacturing cycle time+delivery time
10+12+4 26 days
ans 2
Manufacturing cycle efficiency
Process time/Throughput time
3/12*100 25 %
working :Throughput time=Process+Inspection+Move+queue
3+1.5+2.5+5 12 days
ans 3 Order receipt time 10 days
time order is placed to time order received by manufacturing
ans 4 Manufacturing wait timr 5 days
Time order is received by manufacturing to time production begins
ans 5 Manufacturing lead time 8 days
wait time+process time
5+3
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