Ventaz Corp manufactures keyboards.The manufacturing cycle efficiency is 40%.What is its manufacturing time for value added if the manufacturing lead time is 120 minutes per keyboard?
A) 38.50 minutes
B) 60.00 minutes
C) 48.00 minutes
D) 54.00 minutes

Question

Quizplus · Accepted Answer

Manufacturing cycle efficiency = (Value Added Time / Manufacturing Lead Time) x 100%
0.4 = (Value Added Time / 120 minutes) x 100%
Value Added Time = (0.4 x 120 minutes) / 100%
Value Added Time = 48 minutes.

Therefore, Choice C (48.00 minutes) is the correct answer.

Ventaz Corp Manufactures Keyboards