Indy Company has the following data for one of its manufacturing plants: Maximum
ID: 2533991 • Letter: I
Question
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): 200,000 units
Productive hours in one quarter: 25,000 hours
Required:
If required, round your answers to one decimal place.
1. Compute the theoretical cycle time (in minutes).
minutes per unit
2. Compute the actual cycle time (in minutes).
minutes per unit
3. Compute the theoretical velocity in units per hour.
units per hour
4. Compute the actual velocity in units per hour.
units per hour
Explanation / Answer
1. Theoretical cycle time = (25,000 hours x 60 minutes per hour) / 250,000 units = 6.00 minutes per unit
2. Actual cycle time = (25,000 hours x 60 minutes per hour) / 200,000 units = 7.50 minutes per unit
3. Theoretical velocity in units per hour = 60 minutes per hour / 6 minutes per unit = 10 units per hour
4. Actual velocity in units per hour = 60 minutes per hour / 7.50 minutes per unit = 8 units per hour