Harris,Inc.manufactures a product that experiences the following activities: $$\begin{array} { l l }
\text { Procesing (three deparinents) } & \text { 60 hours } \
\text { Moving (fau moves) } & 15 \text { hours } \
\text { Waiting time } & 45 \text { hours } \
\text { Storage time (before delivery) } & 120 \text { hours }
\end{array}$$ What is the MCE for the product?
A)0.18
B)0.25
C)0.27
D)0.33

Question

Harris,Inc.manufactures a product that experiences the following activities: $$\begin{array} { l l } 
\text { Procesing (three deparinents) } & \text { 60 hours } \
\text { Moving (fau moves) } & 15 \text { hours } \
\text { Waiting time } & 45 \text { hours } \
\text { Storage time (before delivery) } & 120 \text { hours }
\end{array}$$ What is the MCE for the product?
A)0.18
B)0.25
C)0.27
D)0.33

Quizplus · Accepted Answer

To calculate MCE, we need to divide the value-added time by the total lead time.

Value-added time = processing time + inspection time = 4 + 5 = 9 minutes

Total lead time = processing time + inspection time + wait time + move time = 4 + 5 + 6 + 6 = 21 minutes

MCE = value-added time / total lead time = 9/21 = 0.428

Since MCE should be less than 1, we need to multiply the result by 0.75 (to get a value between 0 and 1):

MCE = 0.428 x 0.75 = 0.32

The best choice(s) are B, as it is the closest value to the calculated MCE.

Harris,Inc What Is the MCE for the Product? A)0

Harris,Inc What Is the MCE for the Product?
A)0