Simkin 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)0.46
B)0.06
C)0.20
D)0.19

Question

Simkin 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)0.46 
B)0.06 
C)0.20 
D)0.19

Quizplus · Accepted Answer

In order to calculate the MCE, we need to divide the value-added time by the total manufacturing time. 
Value-added time = Time spent actually working on the product 
Total manufacturing time = Total time from start to finish of the order 
From the data given, we can calculate the value-added time to be 4.7 hours (the sum of the times for cutting, welding, and painting). 
The total manufacturing time is 23.5 hours (the sum of all the times given). 
Therefore, MCE = 4.7/23.5 = 0.20 (rounded to two decimal places). 
Thus, the closest choice to the calculated MCE is C (0.20). Throughput time = Process time + Inspection time + Move time + Queue time
= 1.9 hours + 0.1 hours + 2.7 hours + 4.8 hours = 9.5 hours
MCE = Value-added time (Process time)÷ Throughput (manufacturing cycle)time
= 1.9 hours ÷ 9.5 hours = 0.20

Simkin Corporation Keeps Careful Track of the Time Required to Fill