Nash Corporation manufactures and sells custom snowmobiles.From the time an order is placed till the time the snowmobile reaches the customer averages 50 days.This 50 days is spent as follows: What is Nash's manufacturing cycle efficiency (MCE)for its snowmobiles?
A)30.0%
B)37.5%
C)40.0%
D)60.0%

Question

Nash Corporation manufactures and sells custom snowmobiles.From the time an order is placed till the time the snowmobile reaches the customer averages 50 days.This 50 days is spent as follows:  What is Nash's manufacturing cycle efficiency (MCE)for its snowmobiles?
A)30.0% 
B)37.5% 
C)40.0% 
D)60.0%

Quizplus · Accepted Answer

Throughput time = Process time + Inspection time + Move time + Queue time
= 15 days + 5 days + 5 days + 15 days = 40 days
MCE = Value-added time (Process time)÷ Throughput (manufacturing cycle)time
= 15 days ÷ 40 days = 37.5%

Nash Corporation Manufactures and Sells Custom Snowmobiles