In: Accounting
MCE
Craig, Inc., has provided the following information for one of its products for each hour of production:
Actual velocity: 200 units (per hour) |
Move time: 10 minutes |
Inspection time: 14 minutes |
Rework time: 11 minutes |
Required:
1. Calculate MCE. If required, round your answer to two decimal places.
2. What is the theoretical cycle time? Calculate MCE using actual and theoretical cycle times. If required, round your answers to two decimal places.
Theoretical cycle time | minutes | |
Actual cycle time | minutes | |
MCE |
3. What if waste is
reduced by 50 percent?
New waste = minutes
What is the new MCE? If required, round your answer to two decimal places.
What is the new cycle time?
minutes
Solution :-
Given data,
Actual velocity | 200 units (per hour) |
Move time | 10 minutes |
Inspection time | 14 minutes |
Rework time | 11 minutes |
1. Calculate MCE. If required, round your answer to two decimal places :-
Here we need to find out the MCE .
Process time = Total time - 10 minutes - 14 minutes - 11 minutes
= 60 minutes - 35 minutes
Process time = 25 minutes
MCE = 25 minutes / [ 25 minutes + 10 minutes + 14 minutes + 11 minutes ]
= 25 minutes / 60 minutes
= 0.41 minutes
MCE = 0.41 minutes
MCE = 0.41 minutes |
2. What is the theoretical cycle time? Calculate MCE using actual and theoretical cycle times. If required, round your answers to two decimal places :-
Particulars | Time |
Theoretical cycle time |
= 25 minutes / 200 units = 0.125 = 0.13 minutes |
Actual cycle time |
= Total time / 200 minutes = 60 minutes / 200 minutes = 0.30 minutes |
MCE |
= 0.13 minutes / 0.30 minutes = 0.43 minutes |
3. What if waste is reduced by 50 percent?
New waste = [ 1 - 50% ] * [ Move time + Inspection time + Rework time ]
= [ 1 - 0.50 ] * [ 10 minutes + 14 minutes + 11 minutes ]
= 0.50 * 35 minutes
= 17.50 minutes
New waste = 17.50 minutes
What is the new MCE? If required, round your answer to two decimal places : -
New MEC = Process time / [ Process time + New waste ]
= 25 minutes / [ 25 minutes + 17.50 minutes ]
= 25 minutes / 42.50
= 0.588 minutes
New MEC = 0.59 minutes
What is the new cycle time?
New cycle time = [ Process time + New waste ] / Actual velocity
= [ 25 minutes + 17.50 minutes ] / 200 units
= 42.50 / 200 units
= 0.212 minutes
New cycle time = 0.21 minutes