Simkin 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) 0.46
B) 0.06
C) 0.20
D) 0.19

Question

Simkin 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) 0.46 
B) 0.06 
C) 0.20 
D) 0.19

Quizplus · Accepted Answer

The manufacturing cycle efficiency (MCE) formula is: 
MCE = (Value-added time / Total manufacturing time) x 100%

Value-added time is the time spent actually adding value to the product, while total manufacturing time is the entire time required to manufacture the product.

In this case, the value-added time is 4.5 hours (assembly time + inspection time), and the total manufacturing time is 22.5 hours (assembly time + inspection time + waiting time).

Using the formula, we get: 
MCE = (4.5 / 22.5) x 100%
MCE = 0.2 or 20%

Therefore, the closest option is C) 0.20.

Simkin Corporation Keeps Careful Track of the Time Required to Fill