Cycle time is the time is takes to convert raw materials into finished products. Identify “ONE” thing that management can do to improve or reduce cycle time.
-300 word count, excluding citations and references
-Responses must include at least one reference to an outside source
-Utilize at least 1 in-text citation – Managerial Accounting: Creating Value in a Dynamic Business Environment which includes Connect. Ronald W. Hilton 10th Edition .
Managerial Accounting: Creating Value in a Dynamic Business Environment
which includes Connect. Ronald W. Hilton 10th Edition
Delivering goods on time requires that they be produced on time. Various operational performance measures have been developed to assess the timeliness of the production process. For example, in a manufacturing firm, manufacturing cycle time is the total amount of production time (or throughput time)
required per unit. It can be computed by dividing the total time required to produce a batch by the number
of units in the batch. Velocity is defined as the number of units produced in a given time period. Perhaps an even more important operational measure is themanufacturing cycle efficiency (MCE), defined as follows: The value of the MCE measure lies in its comparison between valueadded time (processing) and non
valueadded time (inspection, waiting, and moving). In many manufacturing companies, MCE is less than 10 percent. Firms with advanced manufacturing systems strive for as high an MCE measure as possible.
