Question

Peterson Papers makes personalized stationery of the highest quality. The company maintains a stock of blank note cards, calling cards, stationery, and envelopes. Customers order online, indicating the product type, personalization (monogram, name), font style, and color. The following schedule is typical of an order of 100 calling cards:

Activity		Minutes
Process order			5
Wait for production to begin			60
Pull calling cards from inventory			10
Set up machine for font style and color			5
Print calling cards			30
Inspect cards			4
Wait for packaging			9
Package cards for shipping			2
Wait for pickup by FedEx			60

Calculate the manufacturing cycle efficiency. (Round answer to 1 decimal place, e.g. 5.1%.)

Manufacturing Cycle Efficiency

%

Answer 1

Value added time = 30 min

Throughput time = Process time + inspection time + Move time + Queue time

= 30+4+9+2+60 = 105 min

Manufacturing cycle efficiency = Value added time / Throughput time = 30 / 105 = 28.6%