Reference no: EM132843706

Folk 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 for this company 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, delivery performance measures have been chosen to evaluate performance. The following information is considered typical of the time involved to complete customer orders.

From time order is placed to time order received by manufacturing 30.0days

From time order is received by manufacturing to time production begins 15.0days

Inspection time 6.5days

Process (manufacturing) time 13.0days

Move time 3.5days

Problem 1: What is the processing cycle efficiency (PCE) for this order (rounded to one decimal point, e.g., 34.721% = 34.7%)?

Multiple Choice

Option 1: 19.1%.
Option 2: 74.7%.
Option 3: 52.5%.
Option 4: 38.8%.
Option 5: 35.0%.