Question

Navern Corporation manufactures and sells custom home elevators. From the time an order is placed until...

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%

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Answer #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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