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Calculating Manufacturing Cycle Efficiency Indy Company has the following data for one of its manufacturing plants:...
Calculating Manufacturing Cycle Efficiency
Indy Company has the following data for one of its manufacturing plants:
Maximum units produced in a quarter (3-month period): 250,000
units
Actual units produced in a quarter (3-month period): 210,000
units
Productive hours in one quarter: 25,000 hours
The actual cycle time for Indy Company is 7.14 minutes, and the theoretical cycle time is 6 minutes.
Required:
1. Calculate the amount of processing time and the amount of nonprocessing time. If required, round your answers to two decimal places.
| Processing time | minutes |
| Nonprocessing time | minutes |
2. Calculate the MCE. If required, round your
answer to nearest whole number.
%
Solutions
Expert Solution
| Answer: |
| 1) |
| Processing time is nothing but a Theoretical cycle time |
| Processing time = 6 min. |
|
Non processing time = Actual Cycle time (-) Processing time = 7.14 minutes (-) 6 minutes = 1.14 minutes |
| Non processing time = 1.14 minutes |
| 2) |
|
Manufacturing cycle Efficiency = Processing time /Actual Cycle time = 6 / 7.14 = 84% |
| Manufacturing cycle time (MCE ) = 84% |
ekkarill92 answered 1 year agoRelated Solutions
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