Question

Buffalo Company manufactures toy trucks. Orders for 7,300 trucks were received during March, with deliveries scheduled evenly throughout the month of April. Trucks are produced simultaneously in 10 manufacturing cells. Time available for production in each cell is 7 hours per day for 21 days during March.

Calculate the takt time. (Round answer to 1 decimal place, e.g. 15.2.)

Takt time

minutes per truck

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At the end of the first hour of a day’s production, one cell had completed 4 good trucks, including one truck that was reworked. Calculate the day-by-the-hour results and the variance. (Round answers to 1 decimal place, e.g. 15.2. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Day-by-the-hour			trucks per hour
Variance			trucks

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At the end of the first hour of a day’s production, one cell had completed 4 good trucks, including one truck that was reworked. Calculate the first time through (FTT) rate. (Round answer to 2 decimal places, e.g. 15.26%.)

First time through rate

%

Answer 1

Answer
	Explanation :
a)	Net time available = 10 Cells * 7 hours per day * 21 days *60 minutes = 88,200 Minutes
	Customers' Demand= 7300 trucks
	Therefore, TAKT TIME = 88200 Minutes/ 7300 Trucks = 12.08 Minutes per truck
b)	Time available in first hour of a days production (in one cells) = 1 cells * 1 hour * 60 minutes = 60 minutes.
	Ideal No. of trucks to be produced in this time = 60 Minutes / 12.08 = 6.95 trucks, = 4.97 rounded to 5 trucks
	Day by the hour results in =5 trucks per hour
	Actual production = 4 trucks
	Variance is nothing but the difference between actual & budgeted production.
	variance = 5 - 4 trucks per hour = -1 truck
c)	The first time through rate
	= FTT Rate = (4-1)/4*100 = 75%