Navern Corporation manufactures and sells custom home elevators. From the time an order is placed until the time the elevator is installed in the customer's home averages 90 days. This 90 days is spent as follows: $\begin{array}{lr}
\text { Wait time } & \text { 40 days } \
\text { Inspection time } & \text { 2 days } \
\text { Process time } & 18 \text { days } \
\text { Move time } & 2 \text { odays } \
\text { Queue time } & 1 \text { ddays }
\end{array}$ What is Navern's manufacturing cycle efficiency (MCE) for its elevators?
A) 20.0%
B) 36.0%
C) 45.0%
D) 64.0%

Question

Quizplus · Accepted Answer

Manufacturing Cycle Efficiency (MCE) is calculated as the process time divided by the total cycle time. In this case, the process time is 18 days, and the total cycle time is 90 days. Therefore, MCE = (18 / 90) * 100% = 20%. However, the correct calculation should be MCE = (Process Time / (Process Time + Inspection Time + Move Time + Queue Time)) * 100%. Given the data: Process Time = 18 days, Inspection Time = 2 days, Move Time = 2 days, Queue Time = 1 day. Thus, MCE = (18 / (18 + 2 + 2 + 1)) * 100% = (18 / 23) * 100% = 78.26%. It seems there was a mistake in my initial calculation and explanation. The correct approach to calculate MCE does not include wait time in the denominator, and I mistakenly provided an incorrect percentage and explanation based on an incorrect formula application. The correct calculation should focus on the value-adding time (Process Time) over the total time excluding non-value-adding times like wait time, which is not part of the efficiency calculation. My initial response incorrectly identified an answer and provided a flawed explanation. The correct MCE calculation should exclude wait times and focus on the efficiency of the production process itself.

Navern Corporation Manufactures and Sells Custom Home Elevators What Is Navern's Manufacturing Cycle Efficiency (MCE) for Its Elevators