Cycle time efficiency is:
A) Defined as the ratio of time spent on value-added activities to the sum of time spent on value-added plus non-value-added activities.
B) Also referred to as process efficiency.
C) Defined as the ratio of throughput to resources used.
D) The ratio of throughput to the amount of product in backlog status.
E) Not typically part of a comprehensive framework for managing and controlling quality since it is a nonfinancial performance indicator.

Question

Quizplus · Accepted Answer

Cycle time efficiency is specifically defined as the ratio of time spent on value-added activities to the sum of time spent on value-added plus non-value-added activities, making option A the correct answer. Option B is incorrect because process efficiency refers to the overall effectiveness of a process in delivering an output that meets the customer's needs. Option C is incorrect because it describes the productivity ratio of throughput to resources used. Option D is incorrect because it describes the ratio of throughput to the amount of product in backlog status. Option E is incorrect because cycle time efficiency is often used as a performance indicator in quality management systems.

Cycle Time Efficiency Is