Chapter 24, Problem 16E

To determine

Introduction:

Manufacturing Cycle Time (MCT): Manufacturing cycle time refers to the time required in converting raw material into finished goods. It is the sum of Process time, Move time, Inspection time, and Queue time.

• Process time: This is the time required for conversion of raw materials into finished goods.

• Move time: The time during which an order moves from one workstation to the next.

• Inspection time: The time spent in examining a product to confirm quality standards.

• Queue time: The waiting time for a job in front of workstations before being processed.

Manufacturing cycle efficiency (MCE): It is the percentage of the time spent in value added activities during manufacturing process.

To Calculate:

Requirement 1: Manufacturing Cycle Time

To determine

Requirement 2: Manufacturing Cycle Efficiency (MCE)

To determine

Requirement 3: Manufacturing Cycle Efficiency (MCE) when manufacturing cycle time is reduced