Ebsen Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: The manufacturing cycle efficiency (MCE)was closest to:
A)0.84
B)0.04
C)0.17
D)0.09

Question

Ebsen Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below:  The manufacturing cycle efficiency (MCE)was closest to:
A)0.84 
B)0.04 
C)0.17 
D)0.09

Quizplus · Accepted Answer

Throughput time = Process time + Inspection time + Move time + Queue time
= 1.3 hours + 0.3 hours + 2.9 hours + 9.4 hours = 13.9 hours
MCE = Value-added time (Process time)÷ Throughput (manufacturing cycle)time
= 1.3 hours ÷ 13.9 hours = 0.094

Ebsen Corporation Keeps Careful Track of the Time Required to Fill