Process productivity is calculated as
A)total units divided by non-value-added processing time.
B)total units divided by value-added processing time.
C)value-added processing time divided by total units.
D)value-added processing divided by total time.

Question

Quizplus · Accepted Answer

Process productivity is defined as the ratio of total units produced to the value-added processing time. Non-value-added time does not contribute to the production of units, so it should not be included in the calculation of process productivity. Therefore, dividing total units by value-added processing time gives the most accurate measure of process productivity.

Process Productivity Is Calculated as