Frank's Manufacturing Firm Has Determined That the Industry Standard Process

question 107

Essay

Frank's manufacturing firm has determined that the industry standard process velocity time is 15 seconds. Frank's OM engineer has determined that their process velocity time is 17 seconds with a throughput time of 136 seconds. If the throughput time cannot be changed, what, how much, and by which direction does the value added time need to change so Frank's manufacturing can match the industry standard process velocity?

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Definitions:

Profit Margin

The ratio of a company's net income divided by its revenue, indicating how much profit the company makes for each dollar of sales.

Unbundling

The practice of separating out parts of a service or product to sell them individually, often used to offer more transparency and choice to customers.

Seasonal Discount

A price reduction offered on products or services during certain times of the year when demand is predictably lower or higher.

Underpricing

The practice of setting the price of a product or service lower than the market value or cost, often to attract customers or gain market share.