The management of International Cookwares believes that delivery performance measures must be improved if the company is to maintain its competitive edge. The following data are considered to be typical of the time to complete orders.Process time: 4 daysWait time to the start of production: 15 daysMove time: 3 daysInspection time: 2 daysQueue time during the production process: 8 daysWhat is the manufacturing cycle efficiency?

Question

Quizplus · Accepted Answer

Manufacturing Cycle Efficiency (MCE) is calculated as the ratio of value-added time to total cycle time. Here, the value-added time is the process time (4 days), and the total cycle time is the sum of all times (4 + 15 + 3 + 2 + 8 = 32 days). MCE = (4/32) * 100% = 12.5%.

The Management of International Cookwares Believes That Delivery Performance Measures