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:
1. What are the sources of value-added and non-value-added work in this process?
2. 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?
3. Step 10: 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?
4. What do you think are the most difficult critical issues to deal with when designing a sound cycle time study such as this one?
