The following data consists of the actual time used andpotential (the best time possible for this review process) to complete eachstep in the review process. The actual times are based on the review of 30projects. The potential times are subjective engineering judgment estimates.Table: Basic Data Review for Construction Project EquipmentArrangementCycle Time (hours)Step Description Actual Potential Difference1Read basic data package44—2Write, type, proof, sign, copy, and distributecover letter21.90.521.43Queue400404Lead engineer calls key people to schedulemeeting40.253.755Write, type, proof, sign, copy, and distributeconfirmation letter184.108.40.206Hold meeting; develop path forward and concerns44—7Project leader and specialist develop missinginformation1212—8Determine plant preferred vendors1212—9Review notes from meeting1212—10Resolve open issues106104211Write, type, proof, sign, copy, and distributebasic data acceptance letter26.50.2526.25Totals267.8151.1116.7Use the data in the table above andanswer the following questions in the space provided below:1. What arethe sources of value-added and non-value-added work in this process?2. Where arethe main opportunities to improve the cycle time of this process, with respectto both actual time used and the potential best times? What strategy would youuse?3. Step 10: ResolveOpen Issues required 104 hours (potential) versus 106 hours (actual). Is therean OFI here? Why or why not? If so, how would you attack it?4. What doyou think are the most difficult critical issues to deal with when designing asound cycle time study such as this one?
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