Yello Company is evaluating performance using delivery performance measures. The production manager provided the following data which is the usual time involved to complete the orders:Waiting time from orders being places to start of production 2 daysWaiting time from the start of production to completion 1 dayProcess time 4 daysmove time 2 daysInspection time 1 dayThe Company operates 7 days a week. The delivery cycle time is

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	4 days
B	7 days
C	8 days
D	10 days

Explanation:

Detailed explanation-1: -What is Manufacturing Cycle Efficiency? Manufacturing cycle efficiency measures the proportion of production time spent on value-added activities. A business can use this information to pare away non value-added activities, thereby reducing costs and shortening the time required to manufacture a product.

Detailed explanation-2: -How to Calculate Manufacturing Cycle Efficiency? To calculate cycle efficiency, divide Value-Added Production Time by the Total Cyle Time. For reference, Total Cycle Time is the summation of all activities associated with the work on a unit from start to finish.

Detailed explanation-3: -The MCE is computed by relating the value-added time/ throughput time. • An MCE of less than 1 means the production process includes non-value added time.

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ECONOMICS

COST ACCOUNTING

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