Question - 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 90
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.