Question

If Toyota Motor Company receives an order on May 4, begins production on May 17, and ships the order on May 19 immediately following production, then what is the manufacturing cycle efficiency (MCE) ratio?

Answer 1

The Manufacturing Cycle Efficiency (MCE) for Toyota, assuming no non-value-added time, would be 100% based on the production beginning on May 17 and shipping on May 19.

Step-by-step explanation:

Manufacturing Cycle Efficiency (MCE) is a measure of the productive efficiency of the production process. It is calculated by dividing the value-added production time by the total production cycle time (which includes both value-added time and non-value-added time). For the given scenario with Toyota Motor Company, we can calculate MCE as follows:

• Order received: May 4
• Production begins: May 17
• Order shipped: May 19

The value-added production time is the actual time spent on manufacturing the product without considering waiting or idle time. In this case, that would be from May 17 to May 19, which is 2 days. If we assume there is no other non-value-added time (such as waiting for parts or idle machine time), we calculate MCE as follows:

MCE = (Value-Added Time / Total Cycle Time) x 100
MCE = (2 days / 2 days) x 100 = 100%

Therefore, if the total cycle time is indeed 2 days, then the MCE for Toyota would be 100%, indicating a highly efficient production process.

Answer 2

Answer: Manufacturing Efficiency cycle = 23.077%

Step-by-step explanation:

Manufacturing Efficiency Cycle ratio is a ratio that measures the percentage of time that is spent on activities that add value in the production of a Good or service in relation to the total cycle time. Total cycle time includes time spent testing and inspecting the product, Packaging the product etc.

Toyota Motor Company received an Order on the 4th of May. Production began on the 17th May which tells us that Value adding Activities Began on the 17th of may and ceased on 19th of may when the order is shipped immediately after production is complete.

4th of May to the 16th = 13 days (13 days includes the 4th of may )

17th of May to the 19th = 3 days (3 days includes the 14th & 17th of may)

Value added activities time = 3 days

total cycle time = 13 days + 3 days = 16 days

Manufacturing Efficiency cycle = Value added activities time/total cycle time

Manufacturing Efficiency cycle = 3/13 = 2307692307

Manufacturing Efficiency cycle = 23.077%

Toyota Manufacturing Efficiency cycle is 23.077%, meaning out of 13 days cycle time only 3 days is spend on value adding activities. Toyota should review their production process and production activities to eliminate activities that do not bring value