Question

1.What is meant by the term decentralization? What benefits result for decentralization?

2.What is the difference between delivery cycle time and throughput time?

3.What four elements make up throughput time?

4.What elements of throughput time are value-added and what elements are non-value added?

Answer 1

1. Decentralization is the process in the organisation in which the higher level people e.g managers divided the work authority and responsibility in the lower level people according to their skills and knowledge so as to attain the level of efficiency and effectiveness

Benefits ;-

1. Helps managers make better, more timely decisions.

2.Lower level managers also work more closely with employees and customers

3. it eases the burden on top management

4.senior management can focus their time and attention on more important management functions like long-term planning, dealing with major customers and suppliers

5.it empowers and motivates lower level management and employees

2

The amount of time from when an order is received from a customer to when the completed order is shipped is called delivery cycle and throughput time is process time, inspectiontime, move time and queue time. Process time is the time period during which work is performed on the product itself time The difference between delivery cycle time and throughput time is the waiting period between when an order is received and when production on the order is started. Throughput time is made up of process time, inspection time, move time, and queue time. Process time is value-added time and inspection time, move time, and queue time are non-value-added time

3

Throughput time is made up of 4 elements that are process time, inspection time, move time, and queue time

4

Process time is value added and others are non value added elements