In the first quarter of operations, a manufacturing cell produced 80,000 stereo speakers, using 20,000 production hours. In the second quarter, the cycle time was 10 minutes per unit with the same number of production hours as were used in the first quarter. Required:
a. Compute the velocity (per hour) for the first quarter.
b. Compute the cycle time for the first quarter.
c. How many units were procured in the second quarter?

a. The velocity (per hour) for the first quarter is 4 units per hour

b. The cycle time for the first quarter is 15 minutes each unit

c. 120,000 units were produced in the second quarter

Explanation:

a. In order to calculate the velocity (per hour) for the first quarter we would have to make the following calculation:

velocity (per hour) for the first quarter= 80,000 units / 20,000 hour = 4 units per hour

The velocity (per hour) for the first quarter is 4 units per hour

b. In order to calculate the cycle time for the first quarter we would have to make the following calculation:

cycle time for the first quarter=4/1 = 15 minutes each unit

The cycle time for the first quarter is 15 minutes each unit

c. In order to calculate How many units were produced in the second quarter we would have to make the following calculation:

units produced in the second quarter=60 minutes / 10 minutes * 20,000 Hours = 120,000 units

120,000 units were produced in the second quarter

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