Homegrown, Inc., manufactures a product that experiences the following activities: Processing (three departments) 60 hours
Moving (four moves) 15 hours
Waiting time 45 hours
Storage time (before delivery) 120 hours
The MCE for the product is

Question

Quizplus · Accepted Answer

MCE = Value-Added Time / Total Lead Time
Value-Added Time includes only Processing time (60 hours)
Total Lead Time includes Processing time (60 hours) + Moving time (15 hours) + Waiting time (45 hours) + Storage time (120 hours) = 240 hours
MCE = 60 / 240 = 0.25