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Wolk 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 10.0 days From time order is received by manufacturing to time production begins 5.0 days Inspection time 1.5 days Process (manufacturing) time 3.0 days Move time 2.5 days What is the processing cycle efficiency (PCE) for this order (rounded to one decimal point, e.g., 34.721%

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Answer:

15.8%

Explanation:

Process Cycle Efficiency= Value Added time/ Lead time

Value-added time is the time spent process and activities on improving or adding usefulness to a product.

Lead time is the time between the order received and order supplied to the customer

Here,

PCE= (3)/(2.5+5+10+1.5) ×100

PCE=15.8%

The processing cycle efficiency for the order mentioned in the context is 15.8%.

The "Value Added Ratio," also known as Process Cycle Efficiency, is a metric that indicates how much time was spent adding value to a process.

 The time spent on processes and activities aimed at improving or increasing the usefulness of a product is referred to as value-added time.  

The lead time is referred to as the time between receiving an order and delivering it to the customer.  

The given information in the context is:

Value Added time = 3

  Lead time is calculated by adding all the times from the process of receiving the order to the time of completing the orders.    

Computation of Process Cycle Efficiency:

[tex]\begin{aligned}\text{Process Cycle Efficiency}&= \frac{\text{Value Added time}}{\text{Lead time}}\\\text{Process Cycle Efficiency}&= \frac{3}{2.5+5+10+1.5}\times 100\\\text{Process Cycle Efficiency}&= 15.8\%\end{aligned}[/tex]

 

Therefore, the Process Cycle Efficiency is 15.8%.  

To know more about the Process Cycle Efficiency, refer to the link below:

https://brainly.com/question/4385508