Durkee Corporation keeps careful track of the time required to fill orders. The

Question

Durkee Corporation keeps careful track of the time required to fill orders. The times required for a particular order appear below:

                                   Hours

Wait time                   10.7

Process time                  0.9

Inspection time             0.4

Move time                     2.3

Required:

a) Calculate the manufacturing cycle time

b) Calculate the manufacturing cycle efficiency (MCE). (round to three decimals)

c) Assume you are the manager and your job is to improve the MCE. Would the MCE be improved by increasing or decreasing the number you calculated in part b)?

Explanation / Answer

Solution a:

Manufacturing cycle time = Process time + Inspection time + Move Tim = 0.9 + 0.4 + 2.3 = 3.6 hours

Solution b:

manufacturing cycle efficiency (MCE) = Value added time (Process time) / Manufacturing cycle time

= 0.9/3.6 = 25%

Solution c:

MCE can be improved by increasing process time or decreasing inspection time and move time.

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