Emerich Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The manufacturing cycle efficiency (MCE) was closest to:
A)0.18
B)0.09
C)0.03
D)0.49

Question

Emerich Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:  The manufacturing cycle efficiency (MCE) was closest to:
A)0.18 
B)0.09 
C)0.03 
D)0.49

Quizplus · Accepted Answer

To calculate manufacturing cycle efficiency (MCE), we need to divide the value-added time by the total cycle time.

Value-added time = time spent on activities that directly add value to the product (in this case, filling orders)

Total cycle time = total time to complete the order from start to finish

From the given times, we can calculate the value-added time as follows:

Value-added time = 6 + 3 + 1 + 8 = 18 minutes

To calculate the total cycle time, we need to add up all the times:

Total cycle time = 6 + 3 + 1 + 8 + 5 + 4 + 2 = 29 minutes

Now, we can calculate MCE as follows:

MCE = Value-added time / Total cycle time

MCE = 18 / 29 = 0.62

The closest answer choice is B, 0.09. Therefore, the answer is B.

Emerich Corporation Keeps Careful Track of the Time Required to Fill