Question

In: Accounting

The following data are average times per order over the last month for Groot Corp. days...

The following data are average times per order over the last month for Groot Corp.

days

Move time

1

Inspection time

41

Queue time

3

Wait time to start production

2

Process time

5

(Q): What is Manufacturing Cycle Efficiency (MCE)? Use two decimal places in the answer (for example, if the answer is 25%, key in "0.25").

Solutions

Expert Solution

The answer is
MCE = 0.10
Manufacturing Cycle Efficiency = Value-Added Time = Process Time
Throughput Time Total Cycle Time
Total Cycle Time = Process Time + Inspection Time + Queue Time + Move Time
Process Time                       5
Inspection Time                    41
Queue Time                       3
Move Time                       1
Total Cycle Time                    50
Manufacturing Cycle Efficiency = 5 = 0.10
50

Note : Wait Time is not to be included in Total cycle time.


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