If Toyota Motor Company receives an order on May 3, begins production on May 14, and...
If Toyota Motor Company receives an order on May 3, begins production on May 14, and ships the order on May 16 immediately following production, then what is the manufacturing cycle efficiency (MCE) ratio?
Homework Answers
Manufacturing cycle efficiency ratio is equal to percentage of time spent for value added activities (i.e. process time).
Value added time or process time is from May 14 to May 16 (i.e. total 3 days).
Inspection and queue time is from May 3 to May 13 (i.e. total 11 days).
Manufacturing cycle time = Inspection and queue time+Process time
= 11 days+3 days = 14 days
Manufacturing cycle efficiency ratio = (Process time/Manufacturing cycle time)*100
= (3 days/14 days)*100 = 21.43% (rounded off)
Therefore the manufacturing cycle efficiency (MCE) ratio is 21.43%.
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