Manufacturing cycle efficiency is calculated as
A)Value-added processing time divided by non-valued added processing time.
B)Non-value-added processing time divided by total manufacturing cycle time.
C)Value-added processing time divided by total manufacturing cycle time.
D)Direct cost of manufacturing divided by total manufacturing cost.

Question

Quizplus · Accepted Answer

Manufacturing cycle efficiency measures the amount of value-added time compared to the total manufacturing cycle time, so the correct formula is value-added processing time divided by total manufacturing cycle time. Choice (A) is incorrect because it only considers value-added and non-value-added processing time, ignoring other aspects of the cycle. Choice (B) is incorrect because it focuses on non-value-added time rather than value-added time. Choice (D) is incorrect because it does not measure the efficiency of the manufacturing cycle, but instead looks at cost.

Manufacturing Cycle Efficiency Is Calculated as