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:
$$\begin{array} { | l | r | }
\hline & \text { Hours } \
\hline \text { Processing Time } & 1.1 \
\hline \text { Inspection Tirne } & 0.4 \
\hline \text { Moving Time } & 0.8 \
\hline \text { Storing Time } & 4.8 \
\hline
\end{array}$$
Required:
a. Compute the manufacturing cycle time.
b. Compute the manufacturing cycle efficiency.
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:
 $$\begin{array} { | l | r | } 
\hline & \text { Hours } \
\hline \text { Processing Time } & 1.1 \
\hline \text { Inspection Tirne } & 0.4 \
\hline \text { Moving Time } & 0.8 \
\hline \text { Storing Time } & 4.8 \
\hline
\end{array}$$ 
Required:
a. Compute the manufacturing cycle time.
b. Compute the manufacturing cycle efficiency.
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:
 $$\begin{array} { | l | r | } 
\hline & \text { Hours } \
\hline \text { Processing Time } & 1.1 \
\hline \text { Inspection Tirne } & 0.4 \
\hline \text { Moving Time } & 0.8 \
\hline \text { Storing Time } & 4.8 \
\hline
\end{array}$$ 
Required:
a. Compute the manufacturing cycle time.
b. Compute the manufacturing cycle efficiency.
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