The Otero Manufacturing Company collected the following information (in days):
$$\begin{array} { | l | r | }
\hline & \text { April } \
\hline \text { Transporting product } & 2.0 \
\hline \text { Processing product } & 14.0 \
\hline \text { Inspecting product } & 0.5 \
\hline \text { Storing product } & 6.0 \
\hline
\end{array}$$
-
What is the manufacturing cycle efficiency?
A) 87.5%.
B) 63.6%.
C) 62.2%.
D) 42.9%.

Question

The Otero Manufacturing Company collected the following information (in days):
$$\begin{array} { | l | r | } 
\hline & \text { April } \
\hline \text { Transporting product } & 2.0 \
\hline \text { Processing product } & 14.0 \
\hline \text { Inspecting product } & 0.5 \
\hline \text { Storing product } & 6.0 \
\hline
\end{array}$$
-
What is the manufacturing cycle efficiency?
A) 87.5%.
B) 63.6%.
C) 62.2%.
D) 42.9%.

Quizplus · Accepted Answer

Manufacturing Cycle Efficiency (MCE) is calculated as the ratio of value-added time to total cycle time. Here, processing time is the only value-added time (14 days), and the total cycle time is the sum of all times (2 + 14 + 0.5 + 6 = 22.5 days). MCE = (14 / 22.5) * 100% = 62.2%.

The Otero Manufacturing Company Collected the Following Information (In Days)