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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 2 years ago
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