The formula for computing Manufacturing Cycle Efficiency (MCE) is
A)Processing Time / (Processing time + Move time + Inspection time + Waiting time + Other non-value-added time).
B)Theoretical Capacity / Production hours available.
C)Cycle time per unit × velocity.
D)none of the above.

Question

Quizplus · Accepted Answer

MCE measures the manufacturing process efficiency by calculating the ratio between the value-added time and the total time required to manufacture a product. Option A is the correct formula for computing MCE, where Processing Time (value-added time) is divided by the total time (Processing time + Move time + Inspection time + Waiting time + Other non-value-added time) required to manufacture a product. Options B and C are incorrect formulas that measure different aspects of manufacturing efficiency. Therefore, the answer is A.

The Formula for Computing Manufacturing Cycle Efficiency (MCE) Is