Question

Calculating Manufacturing Cycle Efficiency Indy Company has the following data for one of its manufacturing plants:...

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.
__________%

Homework Answers

Answer #1

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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