Calculate the manufacturing cycle efficiency of the process


Houses in the North Carolina mountains. The company has developed the following

value chart:

Operations

Average Number

of Days

Receiving materials 2

Storing materials 10

Measuring and cutting materials 9

Handling materials 7

Setting up and moving scaffolding 6

Assembling materials 3

Building fireplace 12

Pegging logs 8

Cutting and framing doors and windows 5

Sealing joints 4

Waiting for county inspectors 6

Inspecting property (county inspectors) 1

a. What are the value-added activities and their total time?

b. What are the non-value-added activities and their total time?

c. Calculate the manufacturing cycle efficiency of the process.

d. Explain the difference between value-added and non-value-added activities.

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Accounting Basics: Calculate the manufacturing cycle efficiency of the process
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