Compute the manufacturing cycle efficiency


Problem: During the last quarter, BOSE Corp. recorded the following average times per order received and processed:

Wait time to start production….         9.0 days
Inspection time…..                           0.8 days
Process time…                                 3.0 days
Move time…                                     0.2 days
Queue time…                                   6.0 days

a. Compute the throughput time.

Throughput time =

b. Compute the manufacturing cycle efficiency (MCE)

MCE =

c. What percentage of the production time is spent in non value added activities?

d. Compute the delivery cycle time.

Delivery cycle time =

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Accounting Basics: Compute the manufacturing cycle efficiency
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