Use the following information for Brief Exercises 11-17and 11-18:
Indy Company has the following data for one of its manufacturing plants:
Maximum units produced in a quarter (3-month period): 250,000 units Actual units produced in a quarter (3-month period): 200,000 units Productive hours in one quarter: 25,000 hours
11-18 (Appendix 11A) Calculating Manufacturing Cycle Efficiency
Refer to the information of Indy Company above. The actual cycle time for Indy Company is 7.5 minutes, and the theoretical cycle time is 6 minutes.
Required:
1. Calculate the amount of processing time and the amount of nonprocessing time.
2. Calculate the MCE. (Round to one decimal place.)
1.
Calculate the amount of processing time per unit and non-processing time per unit.
Manufacturing Cycle Efficiency:
MCE can be defined as the operational measure which can be determined by dividing the value-added time by the total time. Both nonvalue-added time and value-added time are included in the manufacturing cycle efficiency.
The processing time will be equivalent to the theoretical cycle time that is 6 minutes per unit.
Use the following formula to calculate the non-processing time:
Substitute 7
2.
Calculate the MCE.
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