Craig, Inc., has provided the following information for one of its products for

Question

Craig, Inc., has provided the following information for one of its products for each hour of production:

Rework time: 15 minutes

Required:

Actual velocity: 100 units (per hour) Move time: 14 minutes Inspection time: 15 minutes

Rework time: 15 minutes

Required:

Required: 1. Calculate MCE. If required, round your answer to two decimal places. 2. What is the theoretical cycle time? Calculate MCE using actual and theoretical cycle times. If required, round your answers to two decimal places. Theoretical cycle time Actual cycle time MCE 3. What if waste is reduced by 30 percent? New waste- What is the new MCE? If required, round your answer to two decimal places. minutes minutes minutes What is the new cycle time? minutes

Explanation / Answer

Ans. Manufacturing cycle Efficiency (MCE)= value added time/total cycle time

value added is (60-15-15-14) 16 minutes

MCE = 16/44X100 = 36.36%

Calculation of theoretical time cycle = 1/throughout rate

throughout rate= time avaialble/ unit produced

                        = 60/100 = .60 minute

Actual time cycle = 14/100 = .14 minute

MCE theoretical time cycle   = 60%

MCE on actual time cycle = 14%

if ideal/waste time is reduced upto 30%

new waste time (44-30%) =30.80 minute

new MCE = 29.20/30.80 = 94.80%

new cycle time = 29.20/100 = .292 minute

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