Group technology and processing cycle efficiency Ray Brown??s company, Whisper Voice Systems, is trying to increase its processing cycle efficiency (PCE). Because Ray has a very limited budget, he has been searching for a way to increase his PCE by using group technology. One of Ray??s manufacturing managers, Maria Lopez, has been studying group technology and claims that with minimal cost that includes downtime in the operation, she can rearrange existing machinery and workers and improve PCE. Ray is quite skeptical about this and decides to allow Maria to rearrange a small part of his operation. For Ray to be satisfied, he has stated that PCE must increase by 12%. PCE data before and after the rearrangement are as follows:

Does the change in PCE meet Ray??s requirement? Why or why not?

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TIME CATEGORY Inspection Moving BEFORE REARRANGEMENT AFTER REARRANGEMENT 15 minutes 10 minutes 30 minutes 20 minutes 30 minutes 45 minutes 70 minutes 55 minutes Processing Storage