Question

Calculating Cycle Time and Velocity

Indy Company has the following data for one of its manufacturing plants:

Maximum units produced in a quarter (3-month period): 250,000 units

Actual units produced in a quarter (3-month period): 199,000 units

Productive hours in one quarter: 25,000 hours

Required:

1. Compute the theoretical cycle time (in minutes).
minutes per unit

2. Compute the actual cycle time (in minutes). Round your answer to two decimal places.
minutes per unit

3. Compute the theoretical velocity in units per hour.
units per hour

4. Compute the actual velocity in units per hour. Round your answer to two decimal places.
units per hour

Answer 1

Answer:

1)

Theoretical cycle time (in minutes)       = (Productive hours x No. of minutes per hour) / Maximum units produced       =      ( 25,000 hours x 60 minutes ) / 250,000 Units       =   6 minutes per unit

Theoretical cycle time (in minutes)   =   6 minutes per unit

2)

Actual cycle time (in minutes)          = (Productive hours x No. of minutes per hour) / Actual units produced       =      ( 25,000 hours x 60 minutes ) / 199,000 Units       =    7.54 minutes per unit

Actual cycle time (in minutes)   =    7.54 minutes per unit

3)

Theoretical velocity in units per hour         = No. of minutes per hour / Theoretical cycle time (in minutes)         =   60 / 6          =   10 units per hour

Theoretical velocity in units per hour   =   10 units per hour

4)

Actual velocity in units per hour          = No. of minutes per hour / Actual cycle time (in minutes)         =   60 / 7.54          =   7.96 units per hour

Actual velocity in units per hour =   7.96 units per hour