Kingcade Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: The manufacturing cycle efficiency (MCE) was closest to:
A) 0.09
B) 0.12
C) 0.67
D) 0.04

Question

Kingcade Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:  The manufacturing cycle efficiency (MCE) was closest to:
A) 0.09 
B) 0.12 
C) 0.67 
D) 0.04

Quizplus · Accepted Answer

Throughput time = Process time + Inspection time + Move time + Queue time
= 1.1 hours + 0.1 hours + 2.0 hours + 9.1 hours = 12.3 hours
MCE = Value-added time (Process time) ÷ Throughput (manufacturing cycle) time
= 1.1 hours ÷ 12.3 hours = 0.0894

Kingcade Corporation Keeps Careful Track of the Time Required to Fill