Cycle time efficiency is:
A)Defined as the ratio of time spent on value-added activities to the sum of time spent on value-added plus non-value-added activities.
B)Also referred to as process efficiency.
C)Defined as the ratio of throughput to resources used.
D)The ratio of throughput to the amount of product in backlog status.

Question

Quizplus · Accepted Answer

Cycle time efficiency is a measure of how efficiently a process uses its time. It is calculated as the ratio of time spent on value-added activities to the sum of time spent on value-added plus non-value-added activities. Thus, choice A is the correct answer. Option B refers to process efficiency, which is a broader measure of how well a process is performing. Option C refers to productivity, which is a measure of how efficiently resources are being used. Option D is not a valid definition of cycle time efficiency.

Cycle Time Efficiency Is