Navern Corporation manufactures and sells custom home elevators.From the time an order is placed until the time the elevator is installed in the customer's home averages 90 days.This 90 days is spent as follows:
What is Navern's manufacturing cycle efficiency (MCE)for its elevators?
A) 20.0%
B) 36.0%
C) 45.0%
D) 64.0%

Question

Navern Corporation manufactures and sells custom home elevators.From the time an order is placed until the time the elevator is installed in the customer's home averages 90 days.This 90 days is spent as follows:
 What is Navern's manufacturing cycle efficiency (MCE)for its elevators?
A) 20.0% 
B) 36.0% 
C) 45.0% 
D) 64.0%

Quizplus · Accepted Answer

Throughput time = Process time + Inspection time + Move time + Queue time
= 18 days + 2 days + 20 days + 10 days = 50 days
MCE = Value-added time (Process time) ÷ Throughput (manufacturing cycle) time
= 18 days ÷ 50 days = 36%

Navern Corporation Manufactures and Sells Custom Home Elevators