Manufacturing cycle efficiency is calculated as
A)Value-added processing time divided by non-valued added processing time.
B)Non-value-added processing time divided by total manufacturing cycle time.
C)Value-added processing time divided by total manufacturing cycle time.
D)Direct cost of manufacturing divided by total manufacturing cost.

Question

Quizplus · Accepted Answer

Manufacturing cycle efficiency is calculated as the ratio of value-added processing time to total manufacturing cycle time. This measures the proportion of time that is spent on value-adding activities compared to the overall time taken to produce a product. Choice (A) is incorrect because it compares value-added processing time to non-value-added processing time only, without taking into account the total manufacturing cycle time. Choice (B) is incorrect because it compares non-value-added processing time to total manufacturing cycle time only, without taking into account the value-added processing time. Choice (D) is incorrect because it compares the direct cost of manufacturing to the total cost of manufacturing, which is not relevant to calculating manufacturing cycle efficiency.

Manufacturing Cycle Efficiency Is Calculated as