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 Splish manufactures 3-ring binders targeted at the high school market

Accounting Dec 01, 2020

 Splish manufactures 3-ring binders targeted at the high school market. Orders for 53,000 binders were received during July, with deliveries scheduled evenly throughout the month of August. Binders are produced simultaneously in 7 manufacturing cells. Time available for production in each cell is 7.5 hours per day for 22 days during July Calculate the takt time. (Round answer to 2 decimal places, e.g. 15.21.) Takt time minutes per binder LINK TO TEXT At the end of the first hour of a day's production, one cell had completed 40 good binders, including 5 binders that were reworked. 1. Calculate the day-by-the-hour results and the variance. (Round answers to o decimal places, e.g. 1,521. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Binders demanded per hour binders per hour Variance binders 2. Calculate the first time through (FTT) rate. (Round answer to 2 decimal places, e.g. 15.21.) FTT rate

Expert Solution

1.

Net time available=7×7.5 hours×22days ×60 minutes=69,300

Takt time = Net time available/ Customer demand

Takt time =69,300/53,000 =1.31 minutes per binder

2. Binds demand per hour =1cell×1 hour×60 minutes /1.31

=60/1.31

=45.8 or 46 bindera per hour

Variance= 40-46=(6) binders

3. FTT rate = (units produced - Defective units) l Units produced

FTT rate =(40-5)/40

FTT rate =87.5%

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