Bell Porter has the following average times in hours Inspec

Bell & Porter has the following average times (in hours):

Inspecting product 0.30
Manufacturing product 2.10
Storing inventory 0.35
Transporting product 3.25

Required:

Calculate the manufacturing cycle efficiency.

Solution

Manufacturing cycle efficiency = Processing time / (Processing time + Moving time + Storing time + Inspection time)

= 2.10 hrs / (2.10 hrs + 3.25 hrs + 0.35 hrs + 0.30 hrs)

= 2.10 hrs / 6.00 hrs

= 35%