Hunt Company has the following production data: Throughput time 4 hours Delivery cycle time 6 hours Process time 1 hour Wait time before production 2 hours The manufacturing cycle efficiency (MCE) for Hunt Company is:

the manufacturing cycle efficiency (MCE) for Hunt Company is 25%

Explanation:

The computation of the manufacturing cycle efficiency is shown below:

We know that

MCE = Value-added time ÷ Throughput time

Here

Value-added time = Process time = 1 hour

And, the Throughput time = 4 hours

So,

MCE = 1 ÷ 4

= 25%

hence, the manufacturing cycle efficiency (MCE) for Hunt Company is 25%