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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
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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