Indy Company has the following data for one of its manufacturing plants: Maximum

Question

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

Actual cycle time: 7.5 minutes

Theoretical cycle time: 6 minutes

Required:

If required, round your answers to one decimal place.

1. Calculate the amount of processing time and the amount of nonprocessing time.

2. Calculate the MCE.
%

Explanation / Answer

1 Processing time = 6 minutes Nonprocessing time = 7.5-6 = 1.5 minutes 2 MCE = 6/7.5= 80%

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