Navern Corporation manufactures and sells custom home elevators. From the time an order is placed until the time the elevator is installed in the customer’s home averages 49 days. This 49 days is spent as follows:
| Wait time | 11 | days |
| Inspection time | 8 | days |
| Process time | 10 | days |
| Move time | 10 | days |
| Queue time | 10 | days |
What is Navern's manufacturing cycle efficiency (MCE) for its elevators?
Multiple Choice
36.7%
26.3%
63.3%
57.1%
Manufacturing Cycle efficiency (MCE) = Value added time / Manufacturing Cycle time
Value added time = Process time = 10 days
Manufacturing cycle time = Process time + Inspection time + Move time + Queue time
= 10 + 8 + 10 + 10
= 38 days
MCE = 10 days / 38 days
= 26.3%
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