Question

Peterson Papers makes personalized stationery of the highest quality. The company maintains a stock of blank note cards, calling cards, stationery, and envelopes. Customers order online, indicating the product type, personalization (monogram, name), font style, and color. The following schedule is typical of an order of 100 calling cards:

Activity Minutes Process order 5

Wait for production to begin 50

Pull calling cards from inventory 23

Set up machine for font style and color 1

Print calling cards 48

Inspect cards 10

Wait for packaging 18

Package cards for shipping 1

Wait for pickup by FedEx 115

Calculate the manufacturing cycle efficiency. (Round answer to 1 decimal place, e.g. 5.1%.)

Manufacturing Cycle Efficiency %?

Answer 1

Manufacturing cycle efficiency = Value added time / Throughput time

Value added time = Process time = 48 min

Throughput time = Process time + Inspection time + Move time + Queue time

= 48+10+23+1+115 = 197 min

Manufacturing cycle efficiency = 48 / 197 = 24.87%

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