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Zodiac Sound Company manufactures audio systems, both made-to-order and mass-produced systems that are typically sold to large- scale manufacturers of electronics equipment. For competitive reasons, the company is trying to increase its manufacturing cycle efficiency (MCE) measure. As a strategy for improving its MCE performance, the company is considering a switch to JIT manufacturing. While the company managers have a fairly good feel for the costs of implementing JIT, they are unsure about the benefits of such a move, both in financial and nonfinancial terms. To help inform the ultimate decision regarding a move to a JIT system, you've been asked to provide some input. Fortunately, you've recently attended a continuing professional education (CPE) workshop on the costs and benefits of moving to JIT and therefore feel comfortable responding to management's request. Required: 3. Given the estimated data below, calculate the MCE for both the current manufacturing process and the proposed process after implementing JIT: Activity Storage Inspection Moving Processing Current System 60 minutes 30 minutes 45 minutes 60 minutes After JIT Implementation 20 minutes 15 minutes 15 minutes 30 minutes 4. What is the percentage change in average MCE anticipated under JIT? (For all requirements, do not round intermediate calculations and round your final answers to 2 decimal places (i.e., .1234 12.34%).) 3. Current manufacturing process Proposed process after implementing JIT 4. Percentage change in average MCE MCE % % %

Zodiac Sound Company manufactures audio systems, both made-to-order and mass-produced systems that are typically sold to large- scale manufacturers of electronics equipment. For competitive reasons, the company is trying to increase its manufacturing cycle efficiency (MCE) measure. As a strategy for improving its MCE performance, the company is considering a switch to JIT manufacturing. While the company managers have a fairly good feel for the costs of implementing JIT, they are unsure about the benefits of such a move, both in financial and nonfinancial terms. To help inform the ultimate decision regarding a move to a JIT system, you've been asked to provide some input. Fortunately, you've recently attended a continuing professional education (CPE) workshop on the costs and benefits of moving to JIT and therefore feel comfortable responding to management's request. Required: 3. Given the estimated data below, calculate the MCE for both the current manufacturing process and the proposed process after implementing JIT: Activity Storage Inspection Moving Processing Current System 60 minutes 30 minutes 45 minutes 60 minutes After JIT Implementation 20 minutes 15 minutes 15 minutes 30 minutes 4. What is the percentage change in average MCE anticipated under JIT? (For all requirements, do not round intermediate calculations and round your final answers to 2 decimal places (i.e., .1234 12.34%).) 3. Current manufacturing process Proposed process after implementing JIT 4. Percentage change in average MCE MCE % % %

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter11: Strategic Cost Management
Section: Chapter Questions
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Zodiac Sound Company manufactures audio systems, both made-to-order and mass-produced systems that are typically sold to large- scale manufacturers of electronics equipment. For competitive reasons, the company is trying to increase its manufacturing cycle efficiency (MCE) measure. As a strategy for improving its MCE performance, the company is considering a switch to JIT manufacturing. While the company managers have a fairly good feel for the costs of implementing JIT, they are unsure about the benefits of such a move, both in financial and nonfinancial terms. To help inform the ultimate decision regarding a move to a JIT system, you've been asked to provide some input. Fortunately, you've recently attended a continuing professional education (CPE) workshop on the costs and benefits of moving to JIT and therefore feel comfortable responding to management's request. Required: 3. Given the estimated data below, calculate the MCE for both the current manufacturing process and the proposed process after implementing JIT: Activity Storage Inspection Moving Processing Current System 60 minutes 30 minutes 45 minutes 60 minutes 4. What is the percentage change in average MCE anticipated under JIT? (For all requirements, do not round intermediate calculations and round your final answers to 2 decimal places (i.e., .1234 = 12.34%).) 3. Current manufacturing process 4. After JIT Implementation 20 minutes 15 minutes 15 minutes 30 minutes Proposed process after implementing JIT Percentage change in average MCE MCE % % %
Transcribed Image Text:Zodiac Sound Company manufactures audio systems, both made-to-order and mass-produced systems that are typically sold to large- scale manufacturers of electronics equipment. For competitive reasons, the company is trying to increase its manufacturing cycle efficiency (MCE) measure. As a strategy for improving its MCE performance, the company is considering a switch to JIT manufacturing. While the company managers have a fairly good feel for the costs of implementing JIT, they are unsure about the benefits of such a move, both in financial and nonfinancial terms. To help inform the ultimate decision regarding a move to a JIT system, you've been asked to provide some input. Fortunately, you've recently attended a continuing professional education (CPE) workshop on the costs and benefits of moving to JIT and therefore feel comfortable responding to management's request. Required: 3. Given the estimated data below, calculate the MCE for both the current manufacturing process and the proposed process after implementing JIT: Activity Storage Inspection Moving Processing Current System 60 minutes 30 minutes 45 minutes 60 minutes 4. What is the percentage change in average MCE anticipated under JIT? (For all requirements, do not round intermediate calculations and round your final answers to 2 decimal places (i.e., .1234 = 12.34%).) 3. Current manufacturing process 4. After JIT Implementation 20 minutes 15 minutes 15 minutes 30 minutes Proposed process after implementing JIT Percentage change in average MCE MCE % % %
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