Question

Waymouth Manufacturing operates a contract manufacturing plant located in Dublin, Ireland. The plant provides a variety of electronics products and components to consumer goods manufacturers around the world. Cycle time is a critical success factor for Waymouth, which has developed a number of measures of manufacturing speed. Waymouth has studied the matter and found that competitive contract manufacturers have manufacturing cycle times (MCE) of about 39%. When last calculated, Waymouth’s MCE was 34%.

Key measures from the recent month’s production, averaged over all the jobs during that period, are as follows:

Activity	Average Time (hours)
New product development		28.0
Materials handling		1.5
Order setup		5.5
Machine maintenance		2.5
Order scheduling		2.0
Inspection of completed order		4.5
Pack and move to storage or ship		1.5
Manufacturing assembly		22.0
Order taking and checking		2.5
Receiving and stocking raw materials		5.5
Inspection of raw materials at start of production		1.5

Required:

Determine the manufacturing cycle efficiency (MCE) for the recent month. (Round your answer to 1 decimal place.)

Answer 1

Manufacturing cycle efficiency (MCE) = Total processing time/Total cycle time
Manufacturing cycle efficiency (MCE) = 22/46.5= 47.3%
Workings:
Total processing time=Manufacturing assembly = 22.0
Cycle time:
Materials handling	1.5
Order setup	5.5
Machine maintenance	2.5
Order scheduling	2.0
Inspection of completed order	4.5
Pack and move to storage or ship	1.5
Manufacturing assembly	22.0
Receiving and stocking raw materials	5.5
Inspection of raw materials at start of production	1.5
Total Cycle time	46.5