Lionheart Manufacturing Has a Theoretical Capability to Produce 20,250 Printers

question 65

Essay

Lionheart Manufacturing has a theoretical capability to produce 20,250 printers per quarter but currently produces 10,125 printers. The conversion cost per quarter is $4,860,000. There are 6,750 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of printers uses 12 minutes of move time, 8 minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.)
Required:
a. Compute the theoretical and actual velocities per hour and the theoretical and actual cycle times (minutes per unit produced).
b. Compute the ideal and actual amounts of conversion cost assigned to each printer.
c. Calculate the current MCE.
d. If poor employee training is the root cause of wait time and move time, develop an improvement strategy as a series of if-then statements that will reduce the conversion cost per printer.

---

Definitions:

Null Hypotheses

In statistical analysis, it is a statement proposing that no significant difference or effect exists in a certain condition or characteristic being studied.

Weight Loss Centre

A facility dedicated to guiding individuals in losing weight through diet, exercise, and sometimes medical procedures.

Null Hypotheses

A default assumption that there is no significant difference or relationship between specified populations, often tested against an alternative hypothesis.

Alternative Hypotheses

In statistical hypothesis testing, the hypothesis that proposes a difference or effect, contrasting the null hypothesis.