Grey Company is evaluating two manufacturing process layout options, each of which has the following characteristics for producing a batch of output: Process Activity Minutes per Batch
Alternative 1 Alternative 2
Setup time 50 20
Movement time (from start to finish) 20 28
Waiting time 6 32
Inspection time 10 14
Processing time 80 60
Total time (in minutes) 166 154

Required:
a. Determine the production (manufacturing) lead time per batch for each decision alternative.
b. Determine the process cycle efficiency (PCE) for each system.

Production (manufacturing) Lead Time per batch

Production Lead Time = Total Time required to manufacture which includes Setup time, Movement time, Inspection Time, Processing Time and Wait Time.

Decision Alternative 1: 166 Minutes

Decision Alternative 2: 154 Minutes

Process Cycle Efficiency

PCE = Value Added Time / Cycle Time

Except Processing Time all are Non Value Added

Decision Alternative 1 = 80/166 = 0.48

Decision Alternative 2 = 60/154 = 0.39

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