Rotan Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The manufacturing cycle efficiency (MCE) was closest to:
A) 0.89
B) 0.06
C) 0.29
D) 0.12

Question

Rotan Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:  The manufacturing cycle efficiency (MCE) was closest to:
A) 0.89 
B) 0.06 
C) 0.29 
D) 0.12

Quizplus · Accepted Answer

Throughput time = Process time + Inspection time + Move time + Queue time
= 1.2 hours + 0.2 hours + 3.2 hours + 5.1 hours = 9.7 hours
MCE = Value-added time (Process time) ÷ Throughput (manufacturing cycle) time
= 1.2 hours ÷ 9.7 hours = 0.124

Rotan Corporation Keeps Careful Track of the Time Required to Fill