Which of the following statements is characteristic of Manufacturing Cycle Efficiency (MCE)?
A)MCE takes on values between 0 and 100.
B)The lower the MCE, the more efficient the firm.
C)MCE is used by manufacturing firms only.
D)As MCE improves, cycle time decreases.

Question

Quizplus · Accepted Answer

MCE is a measure of the efficiency of the manufacturing process, and it is defined as the ratio of the value-added time to the total cycle time. MCE takes on values between 0 and 1 or 0% to 100%. The higher the MCE, the more efficient the firm is in terms of the time it takes to produce a product. As MCE improves, cycle time decreases, which means that the firm is producing products more quickly and efficiently. Therefore, option D is correct. Option A is incorrect as the MCE takes on values between 0 and 1. Option B is incorrect as the higher the MCE, the more efficient the firm, not the lower. Option C is incorrect as MCE can be used by both manufacturing and non-manufacturing firms.

Which of the Following Statements Is Characteristic of Manufacturing Cycle