Calculating Manufacturing Cycle Efficiency
Indy Company has the following data for one of its manufacturing plants:
Maximum units produced
in a quarter (3-month period): 250,000 units
Actual units produced in a quarter (3-month period): 198,000
units
Productive hours in one quarter: 25,000 hours
The actual cycle time for Indy Company is 7.58 minutes, and the theoretical cycle time is 6 minutes.
Required:
1. Calculate the amount of processing time and the amount of nonprocessing time. If required, round your answers to two decimal places.
Processing time | _______minutes |
Nonprocessing time | _______minutes |
2.
Calculate the MCE. If required, round your answer to nearest whole
number.
__________%
I hope you will rate my answer positively.
Processing time is 6 min,
Non processing time is 1.58min
MCE= 0.79 or 79%
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