Nash Corporation manufactures and sells custom snowmobiles. From the time an ord

Question

Nash Corporation manufactures and sells custom snowmobiles. From the time an order is placed till the time the snowmobile reaches the customer averages 87 days. This 87 days is spent as follows:

What is Nash's manufacturing cycle efficiency (MCE) for its snowmobiles? (Round you answer to one decimal place.)

58.6%

41.4%

32.9%

55.2%

Nash Corporation manufactures and sells custom snowmobiles. From the time an order is placed till the time the snowmobile reaches the customer averages 87 days. This 87 days is spent as follows:

Explanation / Answer

Manufacturing Cycle efficiency is the value added time divided by the throughput time.

Value added time is the process time which is 23 days in this example.

Throughput time is the Move time+ Process time+ Queue time+Inspection time which is 70 days.

So the manufacturing Cycle efficiency is 23/70 = 32.9%

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