Where are the main opportunities to improve the cycle time of this process, with respect to both actual time used and the potential best times? What strategy would you use?

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Homework Assignment 3
Due in Week 3 and worth 30 points

The following data consists of the actual time used and potential (the best time possible for this review process) to complete each step in the review process. The actual times are based on the review of 30 projects. The potential times are subjective engineering judgment estimates.

Table: Basic Data Review for Construction Project Equipment Arrangement
Cycle Time (hours)
Step Description Actual Potential Difference
1 Read basic data package 4 4 —
2 Write, type, proof, sign, copy, and distribute cover letter 21.9 0.5 21.4
3 Queue 40 0 40
4 Lead engineer calls key people to schedule meeting 4 0.25 3.75
5 Write, type, proof, sign, copy, and distribute confirmation letter 25.4 2.1 23.3
6 Hold meeting; develop path forward and concerns 4 4 —
7 Project leader and specialist develop missing information 12 12 —
8 Determine plant preferred vendors 12 12 —
9 Review notes from meeting 12 12 —
10 Resolve open issues 106 104 2
11 Write, type, proof, sign, copy, and distribute basic data acceptance letter 26.5 0.25 26.25
Totals 267.8 151.1 116.7

Use the data in the table above and answer the following questions in the space provided below:

What are the sources of value-added and non-value-added work in this process?

Where are the main opportunities to improve the cycle time of this process, with respect to both actual time used and the potential best times? What strategy would you use?

Resolve Open Issues required 104 hours (potential) versus 106 hours (actual). Is there an OFI here? Why or why not? If so, how would you attack it?

What do you think are the most difficult critical issues to deal with when designing a sound cycle time study such as this one?

Determine at least two (2) challenges in identifying Opportunity for Improvements (OFIs). Suggest at least one (1) strategy that business management can use to mitigate the challenges in question. Provide a rationale to support your suggestion.

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