Jolin 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)0.03
B)0.16
C)0.10
D)0.48

Question

Jolin 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)0.03 
B)0.16 
C)0.10 
D)0.48

Quizplus · Accepted Answer

To calculate the MCE, we need to divide the value of value-added time by the total manufacturing cycle time. Value-added time is the time taken for value-adding activities such as actual manufacturing, assembly, etc. The total manufacturing cycle time is the sum of value-added time and non-value-added time, which includes waiting, inspection, and transportation time.

In the given data, the value-added time is 12 minutes (the time taken for actual manufacturing), and the total manufacturing cycle time is 120 minutes (the sum of all the times given).

Therefore, MCE = value-added time / total manufacturing cycle time 
MCE = 12 / 120 
MCE = 0.1

Therefore, the MCE is closest to 0.1, and the answer is C.

Jolin Corporation Keeps Careful Track of the Time Required to Fill