Indiatlantic Corporation's management keeps track of the time it takes to process orders.During the most recent month,the following average times were recorded per order:$$\begin{array} { | l | r | }
\hline & \text { Hours } \
\hline \text { Processing Time } & 1.1 \
\hline \text { Inspection Time } & 0.4 \
\hline \text { Moving Time } & 0.8 \
\hline \text { Storing Time } & 4.8 \
\hline
\end{array}$$
Required:
a.Compute the manufacturing cycle time.b.Compute the manufacturing cycle efficiency (MCE).c.What percentage of the production time is spent in non-value-added activities?

Question

Indiatlantic Corporation's management keeps track of the time it takes to process orders.During the most recent month,the following average times were recorded per order:$$\begin{array} { | l | r | } 
\hline & \text { Hours } \
\hline \text { Processing Time } & 1.1 \
\hline \text { Inspection Time } & 0.4 \
\hline \text { Moving Time } & 0.8 \
\hline \text { Storing Time } & 4.8 \
\hline
\end{array}$$
Required:
a.Compute the manufacturing cycle time.b.Compute the manufacturing cycle efficiency (MCE).c.What percentage of the production time is spent in non-value-added activities?

Quizplus · Accepted Answer

The Answer of Indiatlantic Corporation's management keeps track of the time it takes to process orders.During the most recent month,the following average times were recorded per order:$$\begin{array} { | l | r | } 
\hline & \text { Hours } \
\hline \text { Processing Time } & 1.1 \
\hline \text { Inspection Time } & 0.4 \
\hline \text { Moving Time } & 0.8 \
\hline \text { Storing Time } & 4.8 \
\hline
\end{array}$$
Required:
a.Compute the manufacturing cycle time.b.Compute the manufacturing cycle efficiency (MCE).c.What percentage of the production time is spent in non-value-added activities?

Indiatlantic Corporation's Management Keeps Track of the Time It Takes