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Question - Chocolate Delights Company produces baking chocolate for use by commercial organizations. The company is analyzing its operations in preparation for reconfiguring its factory setup.

Currently, each batch of chocolate requires the following processes:

Function Time (Minutes)

Receiving ingredients from vendors 90

Transporting ingredients to stockroom 100

Ingredient storage 6,400

Transporting ingredients to production area 75

Mixing ingredients 400

Cooking ingredients 180

Cooling chocolate 90

Packaging chocolate 160

Moving finished goods to warehouse 105

Storing finished goods in warehouse 20,500

Moving finished goods to trucks 150

a) Calculate the total cycle time necessary to manufacture a batch of chocolate.

b) Identify the value-added functions

c) Calculate the manufacturing cycle efficiency (MCE) of this process.

d) Assume that a management consultant has established a goal that Chocolate Delights Company increase its MCE to 5 percent or greater. Identify three possible areas in which the company could reduce its cycle time.

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  • Category:- Accounting Basics
  • Reference No.:- M92780922
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