Graded Homework – Value stream management & performance measurement

Audiophile, Inc. Audiophile’s

PerfectSound Speaker Value Stream produces high performance speakers for home entertainment systems. Twelve assembly workers, one manager/supervisor, one engineer, one purchasing agent, one salesperson, and two maintenance people are assigned to the value stream. All value streams at Audiophile share the efforts of three company executives, three IT support specialists, and four accountants. The PerfectSound Speaker Value Stream had sales of $240,000 in November, representing forty percent of Audiophiles’s sales for the month. At the end of November, Audiophile’s PerfectSound Speaker Value Stream had enough speaker components in raw materials inventory to produce 520 finished speakers. They had 100 speakers in work-in-process and 280 speakers in finished goods inventory. The PerfectSound Speaker Value Stream sold an average of 40 speakers per day during the Month of November. (Assume a month of 20 working days. Audiophile’s PerfectSound Speaker Value Stream has four production cells. The cells had the following first-time though rates in the month of November: Cutting 99%, Assembly 97%, Wiring 94%, and Finishing 96%.

Required:

A. What are the PerfectSound Speaker Value Stream’s sales per person for November?

B. Compute the dock-to-dock time for the PerfectSound Speaker Value Stream for the month of November.

C. Compute the first time through that would be reported for the Audiophile’s PerfectSound Speaker Value Stream in November.