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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 90 days. This 90 days is spent as follows: Wait time 40 days Inspection time 2 days Process time 18 days Move time 20 days Queue time 10 days What is Navern's manufacturing cycle efficiency (MCE) for its elevators?

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Answer #1

Manufacturing cycle efficiency = Process time/Throughput time

= 18/(2+18+20+10)

= 18/50

= 36%

Through put time = Inspection Time + process time + Move time + Queue time

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