How to calculate the manufacturing cycle efficiency

Assignment Help Managerial Accounting

Reference no: EM132655466

Data Screen Corporation is a highly automated manufacturing firm. The vice president of finance has decided that traditional standards are inappropriate for performance measures in an automated environment. Labor is insignificant in terms of the total cost of production and tends to be fixed, material quality is considered more important than minimizing material cost, and customer satisfaction is the number one priority. As a result, production and delivery performance measures have been chosen to evaluate performance. The following information is considered typical of the time involved to finish and ship orders.

Waiting time:

From order being placed to start of production 8.0days

From start of production to completion 7.0days

Inspection time 1.5days

Processing time 3.0days

Move time 2.5days

Required:

Question 1: Calculate the manufacturing cycle efficiency. (Round your percentage answer to 1 decimal place. (i.e., 0.123 should be entered as 12.3))

Question 2: Calculate the delivery cycle time.

Reference no: EM132655466

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