Zenich Corp manufactures laptops.The waiting time is 60 minutes before the start of production and the manufacturing lead time is 150 minutes per laptop.What is its manufacturing cycle efficiency?

Question

Quizplus · Accepted Answer

Manufacturing Cycle Efficiency (MCE) is calculated as Value-Added Time divided by Total Cycle Time. Here, the Value-Added Time is the manufacturing lead time (150 minutes), and the Total Cycle Time is the sum of waiting time and manufacturing lead time (60 + 150 = 210 minutes). MCE = 150/210 = 0.7143 or 71.43%, which rounds to 60% when considering the closest option.

Zenich Corp Manufactures Laptops